Increased prices in the Chinese spot market, coupled with reduced ocean freight rates for the benefit of FOB prices, resulted in iron ore prices in Brazil increasing on average by $4/mt in the last week, returning to levels last seen in March 2017.
Sinter feed fines of 65 percent iron contents are now traded for export from Brazil at $72/mt, the equivalent lumps at $83/mt and blast furnace grade pellets at $118/mt, FOB conditions.
In the Brazilian domestic market, the prices are now $66/mt for sinter feed fines, $74/mt for lumps and $112/mt for blast furnace grade pellets, ex-works, no taxes included.
According to fresh numbers from the Brazilian ministry of industry, foreign trade and services, MDIC, Brazil exported in December 2017 30 million mt of iron ore (pellets excluded), 5 percent less than in November.
Asia was the main destination (24.1 million mt, of which 18.5 million mt to China), followed by the EU (4 million mt), the Middle East (1 million mt) and Turkey (451,200 mt).
Meanwhile, Brazil exported 2.728 million mt of pellets in December, 7.4 percent more than in November, having Asia as main destination (1.030 million mt, of which 400,000 mt to Japan), followed by the EU (600,000 mt), the US (300,000 mt) and Africa (200,000 mt).