World’s second-largest iron ore exporter, Brazil has exported around 29 MnT iron ore in June’16. Iron ore exports fell by around 14.7% in June’16 against 34 MnT in the month of May’16.
Alongside, Brazilian iron ore exports volumes on annual basis drop down by 11% in the same consecutive month prior this year.
Due to halted operations at Samarco 50:50 joint venture between Vale and BHP Billiton which collapsed in the month of Nov’15 due to environmental disruptions, Brazilian iron ore exports had been affected.
The average export price for Brazilian iron ore in June was around USD 37.3/MT FOB Brazil, down by USD 2.2/MT from May’16 as it was USD 39.5/MT. Meanwhile, export prices marginally drop on Y-o-Y as it was USD 38/MT in the same corresponding month last year.
Brazil’s Samarco still faces the operational risks from civil claims over its 2015 mine disaster, but will restart in 2017. However, BHP Billiton and Vale are still fighting to reinstate the claim for Samarco disaster.
BHP Billiton and Vale SA has appeal in a Brazilian court to reinstate a USD 6 billion for a public civil claim from Brazilian authorities over last year’s Samarco iron ore mine disaster. However, Brazil government expect the cost of the work to reach USD 6.23 billion, though the mining companies expected the total cost to be significantly less.
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