The fall in iron ore prices, which now is being traded at $40/mt, has spurred Mexican exporters to avoid the external sale of the product.
According to a government official, 14 companies have permission from the nation’s economy secretariat (SE) to export the product, but just one sold the commodity outside Mexico.
“Most iron ore mines that are working in the country are not operating, and if they have reserves, those reserves are from the year prior. Demand has fallen and the supply [of the product] is not generating results,” said Claudia Ibarra, mining regulation director at the economy ministry, during an event in Mexico City.
In the cumulative period of January to May, bulk iron ore exports at Mexican ports fell 14 percent, year-on-year, to 8.8 million mt.