World’s second largest exporter of iron ore – Brazil has recorded iron ore export volumes at 28.93 MnT in Feb’19, down 13% as compared to Jan’19 exports at 33.16 MnT, according to trade statistics released by Brazil customs. The drop is owing to Vale mishap which led to decommissioning of various upstream tailing dams by the miner effected total iron ore production.
The miner recorded an average of 1.4 MnT of iron ore shipped per day in Feb’19 (till 22nd Feb’19) as against an average of 1.5 MnT per day in Jan’19, according to data from foreign trade agency Secex.
However, on yearly basis, Iron ore export by Brazil increased 22% in Feb’19 compared to Jan’18 exports at 23.8 MnT. For FY’19 (Apr-Feb’19), Brazilian iron ore exports increased 8% to 372.15 MnT as against 343.13 MnT in FY18 same period.
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 declared force majeure, and cut down 40 MnT iron ore and pellet availability along with additional 30 MnT of raw material shortage due to operation hault at Brucutu mines. Later, on 15th Feb, Vale had temporarily suspended operation at its Malaysian Distribution Centre for about 10 to 15 days owing to fire broke out.
Average iron ore prices up 3% in Feb’19
The average price of iron ore exported from Brazil for Feb’19 witnessed at USD 52.9/MT, up 3% on monthly basis as against USD 51.4/MT in Jan’19. The average price of iron ore in Feb’19 witnessed stable as compared to Feb’18 price at USD 52.9/MT.
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