With intensive demand from the Chinese steel industry, the price of the Brazilian sinter feed fines of 65 percent iron contents has increased from last week by $4/mt, achieving $144/mt, the highest quotation since January 2014. Such price refers to wet basis, CFR China conditions.
With a stable premium for lumps and pellets, the prices for these products have followed similar trends, achieving $148/mt for lumps and $170/mt for pellets under the same conditions.
A similar increase was achieved in Brazilian domestic prices, now at $122/mt for sinter feed fines of 65 percent iron, $127/mt for lumps and $148/mt for pellets, ex-works, no taxes included.
In November, Brazil exported 29.15 million mt of combined iron ore and pellets, comparable to 31.19 million mt in October and 37.51 million mt in September. The reduced volume exported in November reflects the poor performance of mining operations in the Southeastern state of Minas Gerais, were mines operated by Vale and of CSN are located.
Although the reduced volume currently exported from Brazil is playing a role in high international prices, sources believe that the main driver for the strong rally in prices is the declining level of iron ore inventories in China, which reflects high economic activity in China and the optimism derived from the perspectives of efficient vaccines against Covid-19.