As Brazil falters, iron ore exports from Australia jump China unlikely to ramp up ore production

Steel Insights Bureau

Exports of iron ore to China from countries competing with Brazil like Australia have jumped as Chinese steel production capacities returns to normal.

India has also benefitted with ore exports rising sharply although India largely exports lower grade ores with Fe content of up to 58 percent.

The good times for iron ore rich countries would continue as China’s own iron ore miners are not expected to raise production to fill the supply gap due to strict environmental regulations.

Spot iron ore price have gone past the $100 as the corona pandemic continue devastate Brazilian and expand its reach within the country severely restricting its ore mining.

Brazil has now surpassed US in new coronavirus cases with the pandemic reportedly spreading to northern states, which accounts for about 8 percent of global supplies. The country’s iron ore exports fell 13 percent in May on year as its key iron ore miner, Vale SA, struggles to restart operations.

This comes after Vale lost almost 100 million tons of iron ore production following the Brumadinho dam burst.