Brazil's iron ore exports up 8% m-o-m in Aug'22

Brazil, the world's second-largest iron ore exporter, recorded an 8% m-o-m increase in its iron ore (excluding pellets) volumes in August 2022. The volumes stood at 32.38 million tonnes (mnt) in the month under consideration as against 30.1 mnt in July 2022, according to trade data released by Brazil customs.

On a yearly basis, exports inched down 1% compared to 32.65 mnt in August 2021.

Exports to China up 7% m-o-m

Brazil's largest iron ore importer, China, recorded a 7% m-o-m increase up to 24.31 mnt in August as against the previous month's 22.79 mnt.

Bahrain was the second-largest among the top importers in August. The country imported 1.59 mnt of iron ore from Brazil followed by Malaysia at 1.09 mnt.

Port-wise performance

Port Sao Luis exported 15.22 mnt of iron ore in August, down 4% m-o-m compared to 15.93 mnt in July. Exports from Port Itaguai stood at 9.5 mnt followed by Port Vitoria at 4.38 mnt.

Iron ore export prices fall in Aug

As per data published by the ministry, prices of iron ore fell in the previous month. The average price of iron ore exported from Brazil in August 2022 moved down by up to $76.8/tonne (t), FOB Brazil as against $90.2/t in July 2022.

On a yearly basis, the average price of iron ore dropped significantly as compared to $163.3/t, FOB Brazil in August 2021.

During January-August 2022, iron ore exports from Brazil were recorded at 209 mnt, as against 221.7 mnt in the CPLY. Brazilian miner Vale SA has trimmed its iron ore production guidance to 310-320 mnt for CY 2022 as against the previous 320-335 mnt. The subdued global demand is likely to keep non-China's demand for ore limited. However, China's manufacturing sector has shown signs of improvement, benefiting from the loosening of Covid-19-related lockdown restrictions.