Brazil: Iron ore exports up 24% y-o-y in May'21

Brazil, the world's second-largest iron ore exporter, recorded a rise in its iron ore (including pellets) export volumes in May'21. Export volumes stood at 26.66 mn t in May'21, up by 24% year-on-year (y-o-y)as against 21.46 mn t in May'20, according to trade statistics released by Brazil customs.

On a monthly basis also, exports increased compared to 25.8 mn t in Apr’21.

Exports picked up on high-grade ore demand from Chinese mills due to rising environmental curbs in that country. The mills’ procurement preference had turned away from low grade ores, given the constraints on capacity utilisation and strong steel margins.

Iron ore export prices pick up in May'21:The average price of iron ore exported from Brazil in May'21 witnessed a rise on a monthly basis to $132.5/t, FoB Brazil as against $129.8/t in Apr'21.On a yearly basis, the average price of iron ore increased significantly as compared to the May'20 price of $64.3/t, FoB Brazil.

Brazil's leading iron ore miner,Vale, achieved a production capacity of 327 mntpa in Q1CY'21, due to the commissioning of its Timbopeba's beneficiation lines (7 mtpa). The company has set a production guidance of 315-335mnt for CY'21.Resumption of theTimbopeba capacity is another positive step in stabilising iron ore production and an important milestone on the way to resuming its 400 mntpa production capacity by the end of CY'22.