Second largest iron ore exporter, Brazil has exported around 30.3 MnT iron ore in March’16. Iron ore exports slightly increased by around 1% M-o-M as it was 30 MnT in the month of Feb’16.
However, Brazilian iron ore exports fell by 1.6% Y-o-Y as it was 30.8 MnT in the same consecutive month prior this year.
Due to sudden historic rise of global iron ore prices (around USD 12/MT) in the month of March, Brazilian iron ore export offers too increased. The average export price for Brazilian iron ore in March was around USD 26.6/MT FOB Brazil, up by USD 3.7/MT M-o-M. Meanwhile, export prices drop by USD 5.1/MT Y-o-Y in the same corresponding month last year.
Largest iron ore miner, Vale’s is opening a giant new mine at just above the worst time possible, since supply/demand imbalance had made iron ore prices weak. But, once the the mine will be under operation, it will shift Vale’s production cost to reduce further than it has already. The production capacity of S11D project will be 90 MnT pa and it is likely to start operations by the end of 2016.
Leave a Reply