Iron ore prices decline in Brazil

Tuesday, 14 May 2019 19:26:03 (GMT+3)   |   Sao Paulo

With reduced iron ore prices in the Chinese spot market and stable ocean freight rates, Brazilian iron ore prices have decreased by $1/mt on a weekly basis, after two consecutive weeks of increases that totaled a $4/mt increase.

Sinter feed fines of 65 percent iron contents are estimated to be traded for export from Brazil at $88/mt, the equivalent lumps at $112/mt and blast furnace grade pellets at $154/mt, FOB conditions.

In the Brazilian domestic market, for equivalent ores, the prices are $82/mt for sinter feed fines, $106/mt for lumps and $148/mt for blast furnace grade pellets, ex-works, no taxes included.

The uncertainties regarding the return to operations of Vale’s Brucutu mine, idled as a consequence of the tragic collapse of the Brumadinho waste dam in January, remain as a positive pressure on prices due to the low availability of higher grade ores, but such pressure is currently offset by both reduced demand from China and exchange rate variations of the yuan vs. the dollar.

So far, Vale is maintaining its iron ore sales target in the range of 307 million mt to 332 million mt in 2019.

Preliminary indications from the local customs authorities point to an increase in May, from the 18.35 million mt of combined iron ore and pellets exported from Brazil in April.

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