With increased iron ore prices in the Chinese spot market and stable ocean freight rates that are neutral on FOB terms, Brazilian iron ore prices have increased in average by $6/mt on a weekly basis.
Sinter feed fines of 65 percent iron contents are estimated to be traded for export from Brazil at $94/mt, the equivalent lumps at $118/mt and blast furnace grade pellets at $160/mt, FOB conditions.
In the Brazilian domestic market, for equivalent ores, the prices are $88/mt for sinter feed fines, $112/mt for lumps and $154/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 indirect consequence of the tragic collapse of the Brumadinho wastes dam in January, remain as a positive pressure on prices due to the low availability of higher-grade ores.
Other wastes dams of Vale, in the southeastern state of Minas Gerais, are currently in danger of immediate collapse, putting additional pressure on iron ore prices, according to local analysts.
Still, 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 a two-digit increase in May from the 18.35 million mt of combined iron ore and pellets exported from Brazil in April.