Brazil, the world’s second-largest iron ore exporter, recorded a 12% y-o-y rise in its iron ore (including pellets) export volumes in Jun’21. The volumes stood at 33.67 million tonnes (mn t)in the month under consideration as against 30.01 mn t in Jun’20, according to trade statistics released by Brazil customs.
On a monthly basis also, the same increased by 26.2% compared to 26.66 mn t in May’21.
Exports picked up on demand for high-grade ore from Chinese mills due to rising environmental curbs in that country. The rise in coke prices in China weighed on prices of low-grade fines, due to their high impurity contents such as silica and alumina, which demand more coke rate.
Also, the rainy season and weakening steel margins continued to have an adverse impact on low grade fines demand. Some traders in China are expecting sintering cuts to continue in the next month too, which may further enhance high grade demand.
Iron ore export prices pick up in Jun’21:The average price of iron ore exported from Brazil in Jun’21 rose on a monthly basis to $153.6/tonne (t), FoB Brazil as against $132.5/t in May’21.On a yearly basis, the average price of iron ore increased significantly as compared to the Jun’20 price of $63.3/t, FoB Brazil.
Vale informed via a press release on 2 Jul’21 that it is commissioning its loading activities at ship loader 6 (“CN6”) at the Ponta da Madeira Maritime Terminal (“PDM”), in Sao Luis, Maranhao, after a five-month maintenance, as previously announced. Earlier, on 16 Jun’21, the company informed that it has stopped traffic on the Fabrica Nova railroad in Brazil which transports iron ore produced at Usina Timbopeba due to labour unrest, as per latest reports. This will stop material transport from Timbopeba and, consequently, halt production at the unit with an estimated impact of 33,000 t of iron ore fines per day.
Leave a Reply