Higher quotations of iron ore prices in the Chinese spot market, coupled with stable ocean freight rates resulted in Brazilian iron ore prices increasing by $2/mt on a weekly basis.
Sinter feed fines of 65 percent iron contents are estimated to be traded for export from Brazil at $87/mt, the equivalent lumps at $111/mt and blast furnace grade pellets at $153/mt, FOB conditions.
In the Brazilian domestic market, for equivalent ores, the prices are $81/mt for sinter feed fines, $105/mt for lumps and $147/mt for blast furnace grade pellets, ex-works, no taxes included.
The price increase still reflects low availability of Brazilian iron ore in the southeastern state of Minas Gerais, despite the planned restart of Vale’s Brucutu mine, idled as an indirect consequence of the collapse of the Brumadinho waste dam in January. In the north of the country, shipments remain delayed due to rains affecting Vale’s port operations.
Preliminary indications by the Brazilian customs authorities point to a sharp reduction in April from the 22.18 million mt of combined iron ore and pellets exported by the country in March.
