With higher quotations in the Chinese spot market, coupled with stable premium for lumps and pellets and also stable ocean freight rates, iron ore prices in Brazil have increased in the last week.
Sinter feed fines of 65 percent iron contents are now traded for export from Brazil at $118/mt, the equivalent lumps at $125/mt and the equivalent blast furnace grade pellets at $132/mt, all CFR China conditions, dry basis, compared to prices last week of $112/mt, $119/mt and $125/mt, respectively.
Also considering dry basis, such prices in the Brazilian domestic market are now respectively $89/mt, $96/mt and 103/mt, ex-works conditions, no taxes included.
In June, Brazil exported 29.25 million mt of iron ore (pellets excluded) and 800,000 mt of pellets, comparable respectively to 20.04 million mt and 1.41 million mt in May. Asian countries were the main destination of the ore (26.04 million mt, of which 22.04 million mt to China), followed by Europe (1.81 million mt) and the Middle East (1.12 million mt). China (700,000 mt) and the US (100,000 mt) were the main destinations of the Brazilian pellets in June.
The volume of iron ore exported in June from the Ponta da Madeira port (PDM) reached 14.71 million mt in June, against 9.75 million mt in May, confirming the return to full capacity of its operations. PDM, from where the miner Vale exports the iron ore produced in the northern state of Para, had maintenance problems during most of May.