World's second largest exporter of iron ore - Brazil has recorded iron ore export volumes at 29.02 MnT in May'19, up 58% as compared to Apr'19 exports at 18.34 MnT, according to trade statistics released by Brazil customs. On yearly basis, exports dropped 16% as compared to 34.62 MnT in May'18.
Brazil iron ore exports have picked up amid rising demand from China and easing supply concerns from Vale. Iron ore inventory at major Chinese ports fell to to 124.9 MnT towards the end of May as against 133.6 MnT at the beginning of May'19. The rise in exports is also attributed to high price realization and high profit margin received amid improved Chinese demand.
The total exports for CY19 (Jan-May) has depicted fall of 12% to 131.64 MnT as against 149.04 MnT in CY18 (Jan-May). Vale underwent collapse at its dam at Corrego do Feijao mine in Minas Gerais in Brumadinho, Brazil on 25th Jan'19. Post which the miner had to shut operations at numerous mines and expects loss in production for the year.
Average iron ore prices up 12% in May'19
The average price of iron ore exported from Brazil for May'19 witnessed at USD 65.5/MT, up 12% on monthly basis as against USD 58.7/MT, FoB Brazil in Apr'19. On yearly basis, the average price of iron ore in May'19 witnessed 38% rise as compared to May'18 price at USD 47.4/MT, FoB.
This was another dull week for global billet market. This week, market was observed exactly in the similar tone with the expectations. The dullness intensity of the global billet market escalated this week, even the Eid festivity did not brought any boon to the market.
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As per the recent data released by NBS (National Bureau of Statistics), Chinese crude steel output records new high in May’19 at 89.09 MnT.
The two key raw material for steel production, Iron Ore and Scrap prices are moving in opposite directions. The Vale disaster at the Brumadinho tailing dam in late January this year has led to a cut in iron ore supplies, and a spike in spot prices making them to hit five years high, leaving no margins for blast furnaces.
Brazil’s Vale which needs court approval to resume production at its Brucutu mine after a deadly dam collapse, told analysts it expects to do so soon, analysts at brokerage XP said on Thursday after meeting with the miner’s top executives.
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