With higher prices in the Chinese spot market, coupled with variations in ocean freight rates and premiums for lumps and pellets, iron ore prices in Brazil have increased on a weekly basis.
Sinter feed fines prices of 65 percent iron contents are negotiated at $102/mt, equivalent lumps at $118/mt - both up by $2/mt - and equivalent blast furnace grade pellets at $133/mt, all CFR China conditions, dry basis.
In the Brazilian domestic market, for wet basis, such prices are now respectively $72/mt, $88/mt and $103/mt, ex-works conditions, no taxes included.
Sources tell SteelOrbis that the impact of current Chinese problems in relation to Brazilian iron ore exports is still under evaluation, with a source from the miner Vale saying that so far their Chinese clients did not inform about plans to reduce iron ore imports, although preliminary indications by customs authorities point to a small decline in February from the daily iron ore export rate in January.
In January, Brazil exported 25.44 million mt of iron ore (pellets excluded) and 1.29 million mt of pellets, against 22.48 million mt and 2.12 million mt, respectively, in December. The main destinations of the iron ore were Asia (21.92 million mt, of which 17.84 million mt to China) and the EU (2.13 million mt). For pellets, the main destinations were Asia (397,600 mt), Africa (317,800 mt), the US (167,400 mt) and Turkey (165,000 mt).
