Brazil, the world’s second largest iron ore exporter, registered 10.5% y-o-y increase in its iron ore (including pellets) export shipments in the first seven months of CY’21 (Jan-Jul’21), customs data maintained with SteelMint shows. Export volumes were recorded at 199.29 million tonnes (mn t) during the period as compared to 180.35 mn t in Jan-Jul’20.
Out of total iron ore exports, fines and lumps accounted for 189.08 mn t and the remainder 10.19 mn t comprised pellets and concentrate. Rise in exports was primarily due to increased Chinese appetite for high-grade Brazilian ore, SteelMint understands.
China, Malaysia retain top importers’ spot
China and Malaysia continued to be the top iron ore importers in Jan-Jul’21 too. Brazil’s iron ore exports to China increased by 6.4% y-o-y to 130.08 mn t during the period under review. Rising demand for high-grade iron ore from Chinese mills due to tight production cuts in the country resulted in higher exports.
Malaysia imported 13.50 mn t of iron ore from Brazil, down 8.4% as compared to 14.75 mn t in CPLY followed by Japan at 7.10 mn t, up marginally y-o-y.
Exports in Jul down y-o-y, m-o-m
In Jul’21, Brazil exported total 31.69 mn t of iron ore and pellets, down by 7% y-o-y as compared to 34.11 mn t in the corresponding period last year (CPLY). According to data published by the country’s economy ministry, exports dropped on lower overall shipments and lesser number of working days in the month. There were 22 working days in Jul’21 compared to 23 in CPLY, making the contraction more severe.
However, on a m-o-m basis, the country’s iron ore exports dropped by 6% as against 33.68 mn t in Jun’21 on lower imports from China amidst steel production cuts.
Outlook
Brazil’s iron ore exports are expected to decline in the coming months, mainly due to lower imports from China amidst ongoing production cuts there. Seasonally weak demand in the monsoon will also impact Brazil’s iron ore supply to China and other traditional destinations at least for the short-term, SteelMint notes.
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