The combined exports of iron ore and pellets from Brazil reached 25.26 million mt in February, 8.4 percent more than in January and 11.6 percent more than February 2014, according to data released this week by the nation's development, industry and foreign trade ministry (MDIC). This reverses the pessimistic expectations that followed the announcement of only 23.30 million mt exported in January, the lowest monthly volume since March 2013.
Sources tell SteelOrbis that on a per-day basis, considering the lower number of working days in February, the increase of 26.5 percent from January is even more significant.
In value, MDIC said the exports of iron ore and pellets in February reached $1.27 billion, a 6 percent increase from January but a 42 percent decline from the $2.1 billion in value acheived in February 2014.
However, iron ore export prices decreased by almost 50 percent in February to $50.20/mt, year-on-year, and 2.3 percent month-on-month, according MDIC.
For a Sao Paulo-based source, prices for 62 percent Fe iron ore shouldn’t increase this year. “I don’t see any improvement in iron ore prices”, he said, adding only the major companies like Rio Tinto, BHP Billiton and Vale “make money” with the product. “Companies that were investing in iron ore in the past five, six years are now exiting the business,” he continued.
The source expects iron ore export prices to remain under $60/mt.