Brazil iron ore exports recover 40% m-o-m in June'20

Brazil -World's second largest iron ore exporter recorded sharp rise in its monthly iron ore export volumes to 30.05 mn t for June'20 as against 21.46 mn t in May'20, according to trade statistics released by Brazil customs. The exports have picked up sharply on easing supply concerns from Brazil post resumption at Vale's Itabira Complex. The mining activities at the complex were suspended due to spreading coronavirus infection in the vicinity. Itabira mine complex produced 36 mn t of iron ore in 2019.

Also, the exports were favored by resumption at Malaysian distribution centre (Malaysian distribution Centre is the supply point in Asia where Brazilian ore is stored and blended, facilitating reduced delivery time from Vale) where the loading operation was put to halt since 24th Mar'20 owing to the inability to secure the minimum resources to operate the terminal amidst the COVID-19 pandemic.

Average iron ore prices down in June '20:

The average price of iron ore exported from Brazil for June'20 witnessed slight fall on a monthly basis to $ 62.7/t, FoB Brazil as against $ 63.3/t, FoB Brazil in May'20. However, on a yearly basis, the average price of iron ore in June'20 dropped 10% as compared to June'19 price at $ 69.5/t, FoB Brazil.