Still reflecting increased demand from the steel industry, along with higher prices in the steel production chain and its impact on the Chinese spot market, iron ore prices in Brazil have increased for the third consecutive week.
Over the week, the premium for lumps has declined, while the premium for pellets has increased, pointing to replacements of lumps by pellets in blast furnaces and resulting in different variations for such iron ore products.
Sinter feed fines of 65 percent iron contents are now traded at $140/mt, the equivalent lumps at $144/mt and blast furnace grade pellets at $166/mt, CFR China conditions, dry basis. This compares to $138/mt, $145/mt and $163/mt, respectively, last week.
In the Brazilian domestic market, with quotations positively affected by reduced ocean freight rates, such prices now are respectively $118/mt, $123/mt and $144/mt, ex-works, no taxes included, comparable to $114/mt, $120/mt and $139/mt last week.
Preliminary numbers from the Brazilian authorities are pointing to a small reduction in November from the 31.19 million mt of combined iron ore and pellets exported from Brazil in October.
Although such numbers are increasing week by week in November, they remain far from the volume exported in September, 37.51 million mt, possibly reflecting lower production from the mines of Vale and CSN located in the southeastern state of Minas Gerais.