Higher iron ore prices in the Chinese spot market, coupled with reduced ocean freight rates that are positive on FOB terms, 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 $89/mt, the equivalent lumps at $113/mt and blast furnace grade pellets at $155/mt, FOB conditions.
In the Brazilian domestic market, for equivalent ores, the prices are $83/mt for sinter feed fines, $107/mt for lumps and $149/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, as a planned restart of Vale’s Brucutu mine was halted by a state civil court, leading a production loss of an annualized 30 million mt, according to Vale.
Nonetheless, Vale maintains its iron ore sales target in the range of 307 million mt to 332 million mt in 2019, although conceding that the final figure will probably be located between the middle and the low end of the range.
In April, Brazil exported 17.05 million mt of iron ore (pellets excluded), against 20.22 million mt in March. The main destinations were Asia (12.45 million mt, of which 7.96 million mt to China), the EU (2.01 million mt), the Middle East (1.29 million mt) and Turkey (542,300 mt).
Pellet exports reached 1.30 million mt in April, against 1.96 million mt in March, in a decline reflecting the stoppage of the Vale’s pellet plants of Fabrica and Corrego do Feijão in the state of Minas Gerais.
The main destinations of the pellets in April were Africa (297,100 mt), the US (276,200 mt), the EU (265,200 mt) and Argentina (229,400 mt).