A small increase of prices in the Chinese export market, stable premium for lumps and pellets and slightly increased ocean freight rates resulted in a $2/mt increase of iron ore export prices from Brazil.
Sinter feed fines of 65 percent iron contents are now traded for export from Brazil at $138/mt, the equivalent lumps at $146/mt and the equivalent blast furnace grade pellets at $152/mt, all CFR China conditions, dry basis, against respectively $136/mt, $144/mt and $150/mt last week.
In the Brazilian domestic market, however, reflecting the higher ocean freight rates, those prices have increased by $1/mt to $112/mt, $119/mt and $125/mt, respectively, dry basis ex-works, no taxes included.
According to the local customs authorities, the total Brazilian exports of combined iron ore and pellets in August reached 31.32 million mt, against 35.00 million mt in July.
However, when considering the tracking of ports, iron ore exports from Brazil in August could have actually increased from July, by an estimated 15 percent, reflecting different dates for the customs declarations between customs authorities and shipping operations. According to sources, shipments booked for July could have been effectively loaded in August.
Nonetheless, the Brazilian iron ore (pellets included) exports in the January-August period of 2020, 209 million mt, show the lowest level since 2013, but analysts believe that the volume of exports should improve along the rest of the year, reflecting chiefly improved performance by the miner Vale.