Brazil Iron Ore Exports Down 15% Y-o-Y in CY'19

World's second-largest iron ore exporter - Brazil recorded fall in export volumes in CY'19 by 15% to 334.67 MnT as against 394.24 MnT in CY18.

On monthly basis in iron ore export volumes decreased to 24.67 MnT in Dec'19, as compared to Nov'19 which was at 27.25 MnT, according to trade statistics released by Brazil customs. On yearly basis, exports dropped 26% as against 33.2 MnT in Dec'18.

Brazilian exports have dropped in CY19 due to Vale mishap in Jan'19. Vale underwent collapse at its dam at Corrego do Feijao mine in Minas Gerais in Brumadinho, Brazil on 25th Jan'19. The miner later declared force majeure and put to halt various mines and dams. It's only in June'19 that the miner resumed operations at its Brucuctu mines but at reduced capacity. On 2nd Dec'19 announced the temporary suspension at Laranjeiras dam, originated at the Brucutu mine, used for disposal of mine tailings and they are supposed to operate at only 40% of its capacity through wet processing with tailings filtration and dry stacking.

Average iron ore prices down 7% in Dec'19: The average price of iron ore exported from Brazil for Dec'19 witnessed 7% declined on a monthly basis to USD 60.4/MT, as against USD 65.2/MT, FoB Brazil in Nov'19. However, on yearly basis, the average price of iron ore in Dec'19 increased 9% as compared to Dec'18 price at USD 55.2/MT, FoB Brazil.