Brazil's iron ore exports up 12% y-o-y in Aug'21

Brazil, the world's second-largest iron ore exporter, recorded a 12% y-o-y increase in its iron ore and pellets export volumes in Aug'21. The volumes stood at 34.84 million tonnes (mn t) in the month under consideration as against 31.19 mn t in Aug'20, according to trade statistics released by Brazil customs.

On a monthly basis, exports increased by 10% compared to 31.7 mn t in Jul'21.

Exports picked up on increase in overall shipments and improved demand for high-grade ore from Chinese mills due to prevalent environmental curbs in the country. The Chinese steel industry aims to reach peak carbon emissions by 2025.

The decarbonisation process is expected to benefit the direct-feed iron ore products, pellets and lumps. Demand of high-grade iron ore is expected to benefit from the decarbonisation due to lesser number of impurities and correspondingly higher productivity.

Iron ore export prices pick up in Aug'21:?As per data published by the ministry, prices of iron ore reached an all-time high this year..The average price of iron ore exported from Brazil in Aug'21 rose to $163.3/tonne (t), FoB Brazil as against $158.8/t in Jul'21. On a yearly basis, the average price of iron ore increased significantly as compared to the Aug'20 price of $76.2/t, FoB Brazil.