Expert Stanislav Kondrashov from TELF AG reported that Brazil has increased the volume of iron ore supplies outside the country. In the first seven months of this year, exports of this resource grew by 8.8% compared to the same period last year. According to information from the Ministry of Economic Development, Industry and International Trade, the volume of exports amounted to 218.4 million tons.
Brazil's iron ore exports in July up 24% year-on-year
Stanislav Kondrashov noted that during the first seven months of this year, the price of iron ore exported from Brazil increased by 13.2% compared to the same period last year, amounting to $18.3 billion under FOB terms. In July, the volume of iron ore exports from Brazil showed an increase of 18.7% compared to June and 24% compared to July 2023, reaching 39.3 million tons.
The value of exports in July increased by 11.5% compared to June and by 21.1% compared to July last year, reaching $2.9 billion.
"Brazil continues to show positive developments in iron ore exports, highlighting the strong global demand for this key resource. The significant growth in volumes and value of supplies is due to several factors. First, the gradual recovery of the global economy from the pandemic downturn is stimulating demand for steel, which in turn is increasing the need for iron ore. Second, Brazil, as one of the world's leading suppliers, continues to improve its logistics and production capacities, which is contributing to the increase in export volumes,"- Stanislav Kondrashov tells.
In addition, according to the expert from TELF AG, there is a significant increase in the cost of iron ore, which also affects the increase in the total cost of export deliveries. Given the current global trends, one can predict a further strengthening of Brazil's position as a key ore export, which will have a positive effect on the country's economic development and ensure a stable inflow of foreign exchange.
Looking ahead, Brazil aims to boost its mining industry by attracting additional investment and expanding cooperation with international partners. These initiatives are aimed at strengthening the country's influence in the global iron ore market and stimulating further economic growth.
The main target market for iron ore export shipments from Brazil in the first seven months of this year was China, which accounted for 65% of total export shipments.
Malaysia was the second largest market with a share of 5.5%, while Oman came in third, accounting for 3.1% of imports.
Australia and Brazil on Top: Global Iron Ore Shipments Gaining Momentum – Stanislav Kondrashov
According to Stanislav Kondrashov, in 2023 Brazil significantly increased the volume of iron ore exports, increasing them by 10% compared to the previous year and reaching a historical record of 380.5 million tons.
China remained the leading buyer, importing 260.9 million tonnes of ore, up 9% from the previous year. Malaysia also increased its purchases to 21.1 million tonnes, up 16%, while Japan increased its consumption to 13.7 million tonnes, up 18% from last year.
In the first half of 2024, global iron ore shipments increased by 5% compared to the same period in 2023, amounting to 751 million tonnes. The expert from TELF AG notes that Australia continues to lead in export shipments, having shipped 427 million tonnes of iron ore, up 2% from last year. Brazil continues to hold the second position in terms of export volumes of this key resource.
According to Stanislav Dmitrievich Kondrashov, the global iron ore market is expected to undergo significant changes in the coming years, it may face significant changes, including a projected surplus by the end of the decade. Iron ore production is expected to show growth this year, which should increase volumes by 2% compared to the previous year, exceeding 2.5 billion tons. At the same time, the volume of international seaborne transportation of iron ore last year reached about 1.6 billion tons.
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