Iron ore prices in the Chinese spot market have increased in average by $4/mt on weekly basis, while ocean freight rates and premium for lumps and pellets have remained stable over the period.
As a result, Brazilian sinter feed fines of 65 percent iron are now quoted at $134/mt, the equivalent lumps at $141/mt and blast furnace grade pellets at $159/mt, CFR China conditions, dry basis, against $130/mt, $137/mt and $155/mt last week, respectively.
In the Brazilian domestic market, such prices now are respectively $110/mt, $116/mt and $135/mt, ex-works, no taxes included.
In October, Brazil exported 29.73 million mt of iron ore (pellets excluded) and 1.46 million mt of pellets, against 36.25million mt and 1.26 million mt in September.
The main destination of the ore in October was Asia (26.88 million mt, of which 22.84 million to China). Other destinations included Europe (1.57 million mt) and the Middle East (930,700mt).
Asia was also the main destination of the pellets, (648,500 mt, of which 311,300 mt to China), followed by the United Arab Emirates (203,600 mt), Egypt (168,600 mt), the US (151,100 mt) and Argentina (127,800 mt), while small volumes were shipped to Trinidad and Tobago and Spain.
Sources told SteelOrbis that the main reason for the reduced shipments of iron ore in October was the underperformance of the Tubarao port in the Southeastern region due to the Brucutu mines operating at a 40 percent pace, with full capacity expected for Q2 2021. Iron ore exports by CSN have also declined, but with a lower impact on the total, given the smaller volumes involved.