Brazil: Iron ore exports fall 3% m-o-m in Aug'24

Brazil's iron ore export shipments declined by 3% m-o-m to 33.84 million tonnes (mnt) in August 2024 compared to 34.89 mnt in July, as per vessel line-up data maintained with BigMint.

Subdued Chinese demand amid falling steel margins, global economic uncertainties, and a cautious approach among steelmakers have weighed on Brazil's iron ore exports.

Exports to China sink 5%

Brazil's iron ore exports to the world's largest importer, China, were recorded at 19.80 mnt in August, a 5% m-o-m fall against 20.86 mnt in July.

The US and Malaysia were the other major importers from Brazil in August. While the US imported 1.27 mnt (up 76% m-o-m), around 1.04 mnt were shipped to Japan, a fall of 54% m-o-m.

Amid weak market fundamentals and reduced molten iron production, low demand, along with rising inventories, have pressured China's imports of iron ore.

Port-wise exports

Ponta Da Madeira Port exported 15.27 mnt of iron ore in August, a slight drop of 1% m-o-m compared to 15.50 mnt in July, followed by Tubarao Port at 7.29 mnt, up 9% m-o-m. However, shipments from Itaguai Port dipped 26% m-o-m to 6.09 mnt.

Price trends

Monthly average Brazilian Fe 62.5% iron ore prices declined sharply by $7/tonne (t) m-o-m to $102/t CFR China against $109/t a month ago, as end-users kept their focus on discounted lower-grade products due to thin steel mill margins.

Outlook

Brazil's iron ore export shipments are expected to remain volatile, with a slight decrease in volumes due to the global economic climate and specific market dynamics. Meanwhile, the continued focus on discounted lower-grade products may exert downward pressure on prices.