With increased prices in the Chinese spot market, coupled with stable premium for lumps and pellets, and also stable ocean freight rates, iron prices in Brazil have increased in average by $6/mt on a weekly basis, a level last seen in July 2019.
Sinter feed fines of 65 percent iron contents are now negotiated at $113/mt, equivalent lumps at $125/mt and blast furnace grade pellets at $139/mt, against respectively $107/mt, $119/mt and $133/mt, all CFR China conditions, dry basis.
Additionally, CFR-basis offers to Europe, in which freight rates are less expensive compared to China, are estimated at $108/mt for 65 percent iron contents sinter feed fines, $86/mt for equivalent lumps and $100/mt for BF grade pellets.
In the Brazilian domestic market, such prices are now, respectively, $84/mt, $96/mt and $110/mt, comparable with $79/mt, $91/mt and $105/mt last week, ex-works conditions, wet basis, no taxes included.
Preliminary numbers from customs authorities point to a volume of combined iron ore and pellets exports in May reduced from the 24 million mt exported from Brazil in April.