World’s second largest exporter of iron ore – Brazil has recorded iron ore export volumes at 27.14 MnT in Sep’19, down 4% as compared to Aug’19 exports at 28.3 MnT, according to trade statistics released by Brazil customs. On yearly basis, exports dropped 20% as against 33.9 MnT in Sep’18..
Brazil iron ore exports fell amid supply concerns from largest iron ore miner Vale. The miner on 15th Aug’19 , reported temporarily operations halt at its Viga concentration plant, which is part of newly acquired Ferrous Resources do Brasil (acquired on 1st Aug’19), due to permit issues. Vale reduced pellet production guidance for the year. The miner reduced guidance to 43 MnT from previously 45 MnT.
The total exports for CY19 (Jan-Sep) has depicted 13% drop to 289.87 MnT as against 251.55 MnT in CY18 (Jan-Sep). Vale underwent collapse at its dam at Corrego do Feijao mine in Minas Gerais in Brumadinho, Brazil on 25th Jan’19. Post which the miner had to shut operations at numerous mines and expects loss in production for the year.
Average iron ore prices down 21% in Sep’19
The average price of iron ore exported from Brazil for Sep’19 witnessed down 21% on monthly basis to USD 68/MT, as against USD 86.6/MT, FoB Brazil in Aug’19. The prices dropped amid falling demand from Chinese mills, due to rising production curbs and increased inventory at Ports.
On yearly basis, the average price of iron ore in Sep’19 witnessed 31% rise as compared to Sep’18 price at USD 52.1/MT, FoB Brazil.
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