Brazil iron ore exports continue increase in Jul'20; up 13% m-o-m

Brazil -world's second-largest iron ore exporter recorded a sharp rise in its monthly iron ore export volumes to 33.99 mn t for Jul'20 as against 30.05 mn t in Jun'20, according to trade statistics released by Brazil customs.

The exports have picked up due to easing supply concerns from Brazil post resumption at Vale's Itabira Complex and resumption at the Malaysian distribution center (Malaysian distribution Centre is the supply point in Asia where Brazilian ore is stored and blended, facilitating reduced delivery time from Vale).

Also in its quarterly results, Vale mentioned that it's guidance for iron ore fines production in 2020 remains unchanged, at 310-330 mn t, assuming the lower end of the guidance as the most likely scenario.

Average iron ore prices increased sharply in Jul'20:

The average price of iron ore exported from Brazil for Jul'20 also witnessed a sharp hike on a monthly basis to $ 70.3/t, FoB Brazil as against $ 62.7 in Jun'20 amid a hike in spot iron ore prices on strong Chinese demand and surge in futures.