Due to expectations that Vale’s iron ore production in the southeastern state of Minas Gerais will see a significant reduction, the price of iron ore has increased again in the Brazilian market, in average by $2/mt on weekly basis, also reflecting higher prices in the Chinese spot market.
Sinter feed fines of 65 percent iron contents are now estimated to be traded for export from Brazil at $73/mt, the equivalent lumps $94/mt and blast furnace grade pellets at $140/mt, FOB conditions.
In the Brazilian domestic market, for equivalent ores, the prices are $67/mt for sinter feed fines, $88/mt for lumps and $134/mt for blast furnace grade pellets, ex-works, no taxes included.
Since the collapse of one of Vale’s iron ore waste dams three weeks ago, the price of the iron ore in the Brazilian domestic market has increased by $12/mt overall.
In January, Brazil exported 29.03 million mt of iron ore (pellets excluded), against 30.07 million mt in December 2018. Exports of pellets reached 4.13 million mt in January, against 3.13 million mt in December 2018.
The main destinations of the iron ore were Asia (22.72 million mt, of which 17.10 million mt to China), the EU (3.79 million mt), the Middle East (1.74 million mt), Turkey (417,300 mt) and South American countries (219,400 mt).
Pellets were destined in January to Asia (1.52 million mt of which 665,200 mt to China), the EU (941,400 mt), Africa (405,100 mt), Argentina (377,200 mt) and the Middle East (366,400 mt).