With slightly higher prices for sinter feed fines in the Chinese spot market, coupled with lower ocean freight rates and a higher premium for lumps and lower premium for pellets, Brazilian iron ore prices have followed different trends based on grade in the last week.
Sinter feed fines prices of 65 percent iron contents are now negotiated at $111/mt ($110/mt last week), equivalent lumps at $128/mt ($126/mt last week) and equivalent blast furnace grade pellets at $140/mt ($148/mt last week), all CFR China conditions, dry basis.
In the Brazilian domestic market, for wet basis, such prices are now respectively $76/mt, $93/mt and $105/mt, against $75/mt, $91/mt and $113/mt last week, ex-works, no taxes included.
With today’s prices, the premium per iron unit of the Brazilian 65 percent ore over the 62 percent Australian ore is equivalent to 10.2 percent, against 9.3 percent last week, reflecting increased demand by steel companies for higher productivity and low emissions at their blast furnaces.
Preliminary indications point to an increased volume of combined iron ore and pellets being exported from Brazil in January from the 24.62 million mt in December.
