Reflecting increased demand from the global steel industry, with higher prices along the steel production chain and its impact on the Chinese spot market, iron ore prices in Brazil have increased for the second consecutive week. The uptrend also reflects the reduction in supply due to the low performance of iron ore exports from Vale at its Tubarão port and from the mines of CSN. However, the premium for lumps and pellets remained stable over the week.
Sinter feed fines of 65 percent iron contents are now traded at $138/mt, the equivalent lumps at $145/mt and blast furnace grade pellets at $163/mt, CFR China conditions, dry basis, reflecting an increase of $4/mt from last week.
In the Brazilian domestic market, such prices now are respectively $114/mt, $120/mt and $139/mt, ex-works, no taxes included, also $4/mt higher week-on-week.
According to numbers from customs authorities, exports of iron ore produced in the Southeastern state of Minas Gerais, which includes the production of Vale and CSN, have declined by 3.8 million mt in October from September.