Brazil's iron ore exports increase sharply in 2005

Brazil’s iron ore exports increase sharply in 2005

Brazil's Foreign Trade Association (AEB) indicates that the country's iron ore exports will likely increase 71% year-on-year in terms of value to $8 billion in 2005. The export volume of iron ore is expected to amount 240 million tons this year, up 10.1% from 218 million tons in 2004. Last year's jump in steel demand, fueled by China's overheated economy and infrastructure modernization, caused a shortage of iron ore in the global market. On the other hand, analysts predict a surplus in iron ore in 2006 and 2007.