With reduced iron ore prices in the Chinese spot market, coupled with a reduced pellet premium, increased lump premium, and reduced ocean freight rates, the price of iron ore in Brazil has shown different patterns for each product.
Sinter feed fines prices of 65 percent iron contents are now negotiated at $104/mt against $105/mt last week; equivalent lumps are at $124/mt compared to $122/mt last week; and equivalent blast furnace grade pellets are at $136/mt compared to $138/mt last week, all CFR China conditions, dry basis.
In the Brazilian domestic market, for wet basis, such prices are now $77/mt, $96/mt and $109/mt, against $76/mt, $94/mt and $109/mt, respectively, last week, all ex-works conditions, no taxes included.
The combined exports of iron ore and pellets from Brazil in February have reached 22.10 million mt, against 26.73 million mt in January.
According to local sources, the 17.5 percent decrease in export volume reflects different factors, such as Vale’s reduced production, intensive rains in the Southeastern region affecting transportation, and the shorter month of February coupled with a local holiday period during the month.
It is still not clear if the Chinese problems related to the Covid-19 outbreak have also affected the iron ore exports.
