Brazil – the world’s second-largest iron ore exporter recorded a rise in its iron ore (including pellets) export volumes in Apr’21. Export volumes stood at 25.8 mn t in Apr’21, up by 8% as against 23.9 mn t in Apr’20, according to trade statistics released by Brazil customs.
Exports picked up on high grade ore demand from Chinese mills due to rising environmental curbs. The mills procurement preference had turned towards higher-grade materials over low grade, given the constraints on capacity utilization and strong steel margins.
On 13 Mar’21 SteelMint had reported that Vale has started the commissioning process to ramp up production at Timbopeba mining site, a part of the Mariana Complex, by adding 7 mn t pa to its current capacity. After the commissioning, the mines’ total capacity would reach 12 mn t pa. The commissioning process is expected to last two months. The resumption of Timbopeba capacity is another positive step in stabilizing iron ore production and an important milestone on the way to resume 400 mn t pa production capacity by the end of CY ’22.
Vale gradually started operations of the tailings filtration plant located at Vargem Grande Complex, the first of the four plants to be operated in Vale’s sites in Minas Gerais. Further, Vale expects to start operations of the first filtration plant in Itabira Complex this year which will help to reduce water in the tailings. Throughout 2022, the second filtration plant in Itabira Complex and the first filtration plant in the Brucutu site will start operating. The four tailings filtration plants will serve beneficiation plants that have a total capacity to process 64 mn t pa of iron ore.
On monthly basis, exports dropped as compared with 28.4 mn t in Mar’21.
Brazil iron ore export prices picked up in Apr ’21:
The average price of iron ore exported from Brazil for Apr’21 witnessed a rise on a monthly basis to $129.8/t, FoB Brazil as against $126.6 in Mar’21.On a yearly basis, the average price of iron ore increased significantly as compared to Apr’20 price at $67.6/t, FoB Brazil.
Outlook–During the month four more mills were downgraded in terms of their emission category. These four Tangshan steel mills have been downgraded to grade D, which means they might need to cut 50% emissions when next round of emergency response comes. Rising emission standards may accelerate high grade ore requirement in near term.
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