A major independent pig iron producer in the state of Minas Gerais told SteelOrbis that they are paying Vale $48/mt, ex- mine, no taxes, but including PIS Cofins levies, for small lumps in the 6 to 19 mm thickness range, locally called hematitinha.
According to the source, the price compares to $49.50/mt five weeks ago (under the same conditions), adding that such price is moving down in a pace slower than expected, given the current downturn in the international prices of the ore.
The source mentioned that the alternative ore consumed by the independent pig iron producers, itabiritic lumps in the 6.35 to 25mm thickness range, supplied by small miners, is currently priced at BRL123/mt ($39.73/mt), CFR, full taxes, stable in BRL in five weeks.
He said that the performance of the itabiritic lumps in their blast furnaces is outpacing hematitinha in financial terms, given the current price of the two products.
According to a source from a major slab producer, Vale is selling in the domestic market, sinter feed at $42/mt, lumps at $55/mt and pellets at $63/mt, all CFR, no taxes included, roughly the same prices in three weeks.