With higher prices in the Chinese spot market, coupled with stable ocean freight rates, Brazilian iron ore prices increased in Brazil by an average of $2/mt FOB on a weekly basis.
Sinter feed fines of 65 percent iron contents are now traded for export from Brazil at $63/mt, the equivalent lumps at $74/mt and blast furnace grade pellets at $121/mt, FOB conditions.
In the Brazilian domestic market, the prices are now $57/mt for sinter feed fines, $68/mt for lumps and $115/mt for blast furnace grade pellets, ex-works, no taxes included.
The premium per iron unit of the Brazilian fine ore, 65 percent grade, over the 62 percent grade product, has decreased from a peak of 30 percent in late March to 26 percent in late April, possibly pointing to the preference ascribed by Chinese steel producers to the lowest priced ores, as an alternative to compensate for the reduced profitability of their operations.