Brazilian iron ore exports amounted to 19.214 million metric tons worth US$1.02 billion in March '07 versus 20.497 million metric tons worth US$895 million in March '06, industry trade group Sinferbase said in its report on Friday.

Brazilian exports in March declined 6.3% on year as miners directed fines toward pellet production and domestic iron ore demand increased.

Year-to-date, iron ore exports were up 3.2% to 57.142 million tons in the first quarter of 2007 vs. the year-ago quarter.

Iron ore sales within Brazil totaled 4.022 million tons in March, up 26.7% from 3 million tons in same-period 2006, and 11 million tons through March 2007, up from 9 million tons in the first quarter of last year.

Domestic iron ore and pellet sales rose in March on year as local steelmakers boosted output to meet rising local demand.

Export shipments of pellets also continued to climb, rising 17.3% in March to 4.387 million metric tons compared with 3.74 million tons in March 2006, according to Sinferbase.

Pellet exports in the first three months of 2007 reached 15 million tons versus to 10 million tons year-on-year.

In early 2006, miners diverted iron ore fines normally used for pellets to export sales because of slack demand for pellets from international steelmakers. Iron pellets are prized for their efficient use in blast furnaces, and popular with European steelmakers.

The trend has reversed to start 2007 as European demand recovers, with pellet exports surging 53% to 15.006 million metric tons in the first quarter of 2007