Brazil: Vale Iron Ore Exports Drop 22% in Q1 CY'18
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Recent trade statistics released by Brazil Customs show that the country has exported a total of 84.18 MnT iron ore & pellets in Q1 CY'18. The Q1 CY'18 exports have declined by 18% Q-o-Q against 102.18 MnT in Q4 CY'17. On yearly basis, the exports have witnessed downfall of 8% as against 91.05 MnT in Q1 CY17.
Out of the total quantity of 84.18 MnT exports, 76.39 MnT stood iron ore (91% of total Q1 exports) and 7.8 MnT exports were pellets.
Why iron ore exports from Brazil dropped in Q1 CY'18 ?
The significant decline in exports is contributed by operation halt in Minas Rio iron ore mines, Anglo American from 12th Mar'18 to 26th Mar'18 due to iron ore leakage on pipeline. The operations resumed on 27Th Mar'18 but a second leakage was detected towards Mar'18 end which resulted in operation halt and may take as long as 90 days for repair and mining resumptions. This is expected to further drop the exports in next Quarter.
Lower buying interest from Chinese traders with ore containing high silica content have further contributed to lower Brazilian exports owing to high port inventories and production cut policies enforced by government of China.
In Mar'18, the country has exported around 29.95 MnT iron ore (including pellets). On monthly basis, iron ore & pellet exports increased sharply by 26% M-o-M against 23.79 MnT in Feb'18. However, on yearly basis the exports from Brazil recorded a decline of 18% in Mar'18 as compared to Mar'17 exports at 36.4 MnT.
Out of the total 29.95 MnT exports from Brazil in Mar'18, 27.13 MnT was iron ore, recording a significant rise of 25% M-o-M against 21.73 MnT in Feb'18. Remaining 2.82 MnT quantity of exports stood pellets in Mar'18, up significantly by 37% M-o-M against 2.06 MnT in Feb'18.
Vale iron ore exports down sharply by 22% in Q1 CY'18:
Vale, the world's largest iron ore producer exported around 65.72 MnT iron ore in Q1 CY18, down 22% against the previous quarter. CSN stood the second largest exporter at 5.87 MnT (down 12% Q-o-Q) followed by Anglo-American at 2.91 MnT.
In Mar'18, Vale exported 23.25 MnT iron ore via sea route, followed by CSN at 2.55 MnT (up 50 % M-o-M) and Anglo American at 0.82 MnT (down 22% M-o-M).
Iron ore exports from Vale have increased by 28% M-o-M to 23.25 MnT in Mar'18 against 18.11 MnT in Feb'18.
| SHIPPER | Q1 CY'18 | Q4 CY'17 | Q-o-Q (%) |
| Vale | 65.72 | 84.75 | -22% |
| CSN | 5.87 | 6.65 | -12% |
| Anglo American | 2.91 | 4.34 | -33% |
| N/A | 1.89 | 0.77 | 146% |
| Grand Total | 76.39 | 96.50 | -21% |
Quantity in MnT
Source: Inchcape Shipping Services, Brazil
Provisional Data
China iron ore imports from Brazil down 15% in Q1 CY'18:
China, largest importer of Brazilian iron ore contributed 64% of total exports in Q1 CY'18. The imports recorded a decline of 15% Q-o-Q in Q1 CY'18 at 48.81 MnT against Q4 CY'18 at 57.69 MnT. Malaysia stood the second largest importer at 3.51 MnT (down 30% Q-o-Q) followed by Netherland at 3.34 MnT (down 23% Q-o-Q) and Japan at 2.75 MnT.
China's iron ore imports recorded a remarkable decline in Q1 CY'18 owing to week long lunar new year holidays (15th Feb- 21st Feb), reduced construction activities, production cut in winter heating season (till mid-march), and extended production cuts imposed by the Chinese government to combat pollution. These factors cumulatively affected Chinese iron ore demand.
China, accounted for 65% of total Brazilian iron ore exports in Mar'18 via sea route, followed by Japan at 1.29 MnT ( up by more than twice M-o-M), Malaysia at 1.17 MnT (down 40% M-o-M) and Portugal at 0.90 MnT.
China's iron ore imports from Brazil increased from 13.54 MnT in Feb'18 to 17.65 MnT in Mar'18. Philippines, UK , Spain and Mexico witnessed sharp rise in imports from Brazil in first quarter CY'18.
Country-Wise Brazil Iron Ore Exports: Q1 CY18 v/s Q4 CY17
| Country | Mar'18 | Feb'18 | M-o-M (%) | Q1 CY'18 | Q4 CY'17 | Q-o-Q (%) |
| China | 17.65 | 13.54 | 30% | 48.81 | 57.69 | -15% |
| Malaysia | 1.17 | 1.95 | -40% | 3.51 | 4.99 | -30% |
| Netherland | 0.77 | 1.33 | -42% | 3.34 | 4.32 | -23% |
| Japan | 1.29 | 0.62 | 109% | 2.75 | 6.57 | -58% |
| Oman | 0.39 | 0.39 | 0% | 2.11 | 2.22 | -5% |
| Portugal | 0.90 | - | 1000% | 1.97 | 2.97 | -34% |
| South Korea | 0.55 | 0.66 | -17% | 1.58 | 3.22 | -51% |
| France | 0.58 | 0.38 | 54% | 1.40 | 1.61 | -13% |
| Philippines | 0.27 | - | 100% | 1.37 | 0.42 | 222% |
| United Kingdom | 0.38 | 0.25 | 53% | 0.93 | 0.54 | 74% |
| Spain | 0.35 | 0.36 | -4% | 0.89 | 0.60 | 49% |
| Italy | 0.36 | - | 100% | 0.78 | 0.89 | -13% |
| Turkey | 0.34 | 0.17 | 100% | 0.76 | 2.30 | -67% |
| Mexico | 0.32 | 0.27 | 21% | 0.72 | 0.27 | 168% |
| Others | 1.82 | 1.82 | 0% | 5.46 | 7.90 | -31% |
| Grand Total | 27.13 | 21.73 | 25% | 76.39 | 96.50 | -21% |
Quantity in MnT
Source: Inchcape Shipping Services, Brazil
Provisional Data
Ponta Da Madeira contributed 50% of Brazilian exports in Q1 CY'18
Ponta Da Madeira accounted for almost half of total Brazilian export in first quarter CY'18 at 37.51 MnT, followed by Rio De Janeiro at 27% and Tubarao Port at 13.27 MnT.
In Mar'18 Ponta Da Madeira contributed 50% of total exports at 13.47 MnT. Other major ports for Brazilian iron ore export were Rio De Janeiro at 31% and Tubarao Port 15%.
| PORT | Q1 CY'18 |
| Ponta Da Maderia | 37.51 |
| Rio De Janeiro | 20.81 |
| Tubarao Port | 13.27 |
| Acu Port | 2.91 |
| Sudeste Port | 1.89 |
| Grand Total | 76.39 |
Quantity in MnT
Source: Inchcape Shipping Services, Brazil
Provisional Data
