Brazil -world’s second-largest iron ore exporter recorded a rise in iron ore export shipments in Feb’21. The export volumes picked up by 11% on a yearly basis to 24.1 mn t as against 21.7 mn t in Feb’20, according to trade statistics released by Brazil customs. With Vale resuming operations at its mines, which were halted due to disaster in Brumadinho in January 2019, pushed up the Brazilian exports for the month.
Export volumes dropped by17% on a monthly basis as compared with 29 mn t exports in Jan’20. Exports dropped for the month on reduced Chinese buying due to the lunar New Year holiday in Feb’21.
Brazil iron ore export prices picked up in Feb ’21:
The average price of iron ore exported from Brazil for Feb’21 witnessed a rise on a monthly basis to $119.8/t, FoB Brazil as against $94.7 in Jan’21.On a yearly basis, the average price of iron ore increased significantly as compared to Feb’20 price at $68.2/t, FoB Brazil.
Outlook –Brazilian major miner Vale ended CY ’20 with 322 mn t of production capacity and expects to achieve 350 mn t capacity by the end of CY’21.This may result in rising Brazilian exports. However, with rising Chinese environmental curbs exports may remain range bound. There is a new round of environmental curbs in Tangshan from 2nd-5th Mar and is expected to continue for 15 days. This is likely to keep demand for high grade ore supported in China.
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