Brazil: Iron Ore Exports Up 15% M-o-M in Oct'19

World's second-largest exporter of iron ore - Brazil has recorded an increase in iron ore export volumes to 31.2 MnT in Oct'19, as compared to Sept'19 which was at 27.14 MnT, according to trade statistics released by Brazil customs. On yearly basis, exports dropped 16% as against 37.2 MnT in Oct'18.

On 25th Oct 2019 Samarco received a Corrective Operation License (LOC) for its activities in Minas Gerais. The license was approved by the Mining Activities Chamber (CMI) of the State Council for Environmental Policy (COPAM). Samarco has obtained all environmental licenses and is expected to restart operation.

However, total Brazil iron ore exports for CY19 (Jan-Oct) has decreased by 13% to 282.75 MnT as against 326.8 MnT in CY18 (Jan-Oct). Vale underwent collapse at its dam at Corrego do Feijao mine in Minas Gerais in Brumadinho, Brazil on 25th Jan'19. Post which the miner had to shut operations at numerous mines and expects a loss in production for the year.

Average iron ore prices down 8% in Oct'19: The average price of iron ore exported from Brazil for Oct'19 witnessed down 8% on monthly basis to USD 62.9/MT, as against USD 68/MT, FoB Brazil in Sept'19. The prices dropped amid falling demand from Chinese mills, due to rising production curbs and increased inventory at ports.

On yearly basis, the average price of iron ore in Oct'19 witnessed 13% rise as compared to Oct'18 price at USD 55.7/MT, FoB Brazil.