Brazilian independent pig iron producers are buying high grade (64 percent to 65 percent iron contents) small lumps of iron ore at $60/mt, ex-taxes, FOB mine, comparable to $64/mt one month ago, a major producer in the southeastern state of Minas Gerais told SteelOrbis.
Such ore, also known as “hematitinha”, is the most used ore by independent steel producers, as its grain in the 6mm to 19mm range is the most suitable for the small blast furnaces of the sector.
According to sources, the high price of hematitinha earlier this year, around $80/mt in January, prompted producers to partially replace it with lower-priced ores, such as low grade lumps, which despite the poor physical performance in the blast furnaces, resulted in better financial results when compared to hematitinha.