With reduced prices in the Chinese iron ore spot market and stable ocean freight rates, iron ore prices in Brazil have declined in average by $2/mt week-on-week.
Sinter feed fines of 65 percent iron contents are estimated to be traded for export from Brazil at $71/mt, the equivalent lumps $95/mt, and blast furnace grade pellets at $137/mt, all FOB conditions.
In the Brazilian domestic market, for equivalent ores, the prices are $65/mt for sinter feed fines, $89/mt for lumps, and $131/mt for blast furnace grade pellets, all ex-works, no taxes included.
Since the tragic accident in January at Vale’s iron ore waste dam in Brumadinho, iron ore prices have oscillated worldwide following news of reduced production in certain areas of Brazil combined with news of increased production in mines located in different areas.
Two months after the accident, the price of the Brazilian iron ore of 65 percent iron contents, dry basis, CFR China conditions, has increased from $89/mt before the accident to $96/mt today, after having reached peaks of more than $102/mt in early February.
In February, Brazil exported 26.66 million mt of iron ore (pellets excluded) and 2.26 million mt of pellets. This compares with 29.03 million mt and 4.13 million mt in January, respectively. Preliminary numbers from the country’s customs authorities point to a reduction, in March, from the 28.92 million mt of combined iron ore and pellets exported in February.
