After two consecutive weeks of $10/mt price increases, export offers for Brazilian sinter feed fines of 65 percent iron contents have increased by $1/mt from last week, now reflecting positive perspectives derived from the announcement of the highest-ever GDP growth in China.
Additionally, some sources believe that a recent fire in a berth at the Ponta da Madeira Port, in the north of Brazil, also impacted prices due to speculations on supply shortages, although iron ore producer Vale has declared that the incident did not affect the operations of the company.
And increased premium for lumps and pellets has also impacted prices, with steel producers in China eager for such products that consume less coke in their blast furnaces, reducing the level of emissions during the cold season.
Sinter feed fines of 65 percent iron contents are now traded for export from Brazil at $195/mt, the equivalent lumps at $218/mt and blast furnace grade pellets at $242/mt, all CFR China conditions, dry basis.
With increased ocean freight rates, negatively affecting domestic prices in FOB terms, in the Brazilian domestic market such prices now are respectively $167/mt, $191/mt and $215/mt, ex-works, no taxes included.
Preliminary numbers from the customs authorities are pointing to a stable volume of combined iron ore and pellets exports in January compared to the 33.16 million mt exported from Brazil in December.