Brazilian
officials say there is no room for fear when it comes to the
country’s capacity to keep up with Chinese demand for iron
ore.
Iron ore prices
hit six-and-a-half year highs last week as the Chinese
construction and manufacturing sector experiences levels of
activity last seen almost a decade ago. In the past three
months China’s iron ore imports have climbed 20 per cent
year on year, while year-to-date they are up 11 per cent
compared to 2019.
Brazilian
Secretary of Geology, Mining and Mineral Transformation,
Alexandre Vidigal
“We are seeing a
recovery scenario that is already quite favorable for the
Brazilian market,” said Brazilian Secretary of Geology, Mining
and Mineral Transformation, Alexandre Vidigal,
In Q2 2020,
Brazilian mining companies reached a production value of
R$39 billion ($7.5 billion), an increase of 9% over Q1.
Brazil’s iron
ore exports – which represent 59% of the country’s mineral
production – totaled $5 billion in Q2, 6% higher than Q1
2020, but 5% lower than in Q2 2019. The country exported 76
million tonnes, 8% above the total registered in Q1 2020,
but 3% lower than Q2 2019.
Brazilian mining
giant Vale has been returning to its pre-pandemic level
operations as exports have hit 33.4 million tonnes in July,
up nearly 60% from May.
“These are facts
that signal a tendency for the sector to recover,
reinforcing our understanding that the mineral industry may
play a prominent role in the country’s economic recovery,”
said Vidigal.
Industry group
IBRAM projects that the country will export 310 million
tonnes in 2020, lower than the 340 million tonnes exported
in 2019.
“In 2020,
besides the pandemic, intense rains at the beginning of the
year and operational adjustments of mining companies to meet
resolutions involving dams hit the production,” said Cinthia
de Paiva Rodrigues, research and development manager at
IBRAM.
Source: Bruno
Venditti |