Second largest iron ore exporter, Brazil has exported around 34 MnT iron ore in May’16. Iron ore exports rose by 17.6% M-o-M as it was 28.9 MnT in the month of Apr’16.
Alongside, Brazilian iron ore exports volumes on annual basis significantly increased by 22.7% in the same consecutive month prior this year.
Despite halted operations at Samarco, a 50:50 joint venture between Vale and BHP Billiton, which collapsed in the month of Nov’15 due to environmental disruptions, Brazil still managed to increase it exports. It still faces the operational risks from civil claims over its 2015 mine disaster, but will restart in 2017. Production of concentrated iron ore from Samarco was 25.36 MnT in 2015, down from 26.29 MnT in 2014.
The average export price for Brazilian iron ore in May was around USD 39.5/MT FOB Brazil, up by USD 6.2/MT from Apr’16 as it was USD 33.3/MT. On similar lines, export prices increased by USD 5.9/MT Y-o-Y as it was USD 33.6/MT in the same corresponding month last year.
Vale, world’s largest iron ore producer, target to produce around 340–350 MnT iron ore in 2016. Vale is all ready for iron ore price war with its upcoming S11 D project. The USD 17 billion Carajas Serra mine expansion and its railway project in northeastern Brazil are 85% complete. S11D may produce between 30-40 MnT next year and reach 80% of capacity by 2018.
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