Hematitinha, the main iron ore consumed by Brazilian independent pig iron producers, is currently priced at $54/mt, ex-taxes, FOB mine, for the high quality grades, with 64 percent to 65 percent iron contents, a major pig iron producer told SteelOrbis.
According to the source, the price compares to $60/mt one month ago, giving producers a relief in their margins, as the price of the pig iron is also moving downwards, chiefly for the producers of the steelmaking grade product.
The source mentioned that alternative ores such as low grade itabiritic lumps in the 6.35mm to 25mm thickness range are being offered CFR conditions by small miners at BRL 126/mt to BRL139/mt ($50/mt to $55/mt), which compete with the richer ores in financial terms, in spite of the poor physical performance in the blast furnaces.
The pig iron producers are also benefiting from reduced charcoal prices, used as reductant in its blast furnaces, currently offered at BRL132 per cubic meter, against BRL145 one month ago.