Brazilian iron ore exports to China slowed in October from the previous month's record and shipments to Europe remained half year-ago levels.
Brazil exported a total 31.2mn t of iron ore in October, down by 8.6pc on the year and by 16.8pc from a five-year high of 37.9mn t in September, according to Brazilian customs data. It exported 23.2mn t to China in October, down by 8.9pc on the year and by 27.3pc from a record 31.9mn t in September, customs data show.
A recovery in iron ore shipments from Brazilian mining firm Vale was expected to weigh on seaborne iron ore prices into the end of the year. Wet weather and Covid-19-related lockdowns hampered its operations in the first half of this year. The Argus ICX 62pc index fell from a six-year high of $130.55/dry metric tonne (dmt) in September to below $120/dmt from late October to early November. Prices over the past week rose back above $120/dmt on support from surging steel markets and a slowdown in iron ore arrivals.
Increased fourth-quarter supply was forecast to pressure 62pc fines prices down to $100/dmt cfr China. But China's total iron ore imports dipped slightly in October and arrivals slowed last week to provide price support.
Exports to Europe fell by 52pc from a year earlier and by around 1pc from September to 1.65mn t. Europe has led declines in 2020, with January-October shipments from Brazil down by 42.5pc.
| Brazil's iron ore exports | '000s t | |||||
| Origin | Oct-20 | Oct-19 | ± % | Jan-Oct 2020 | Jan-Oct 2019 | ± % |
| China | 23,155.1 | 21,262.1 | 8.9 | 202,095.5 | 180,357.3 | 12.1 |
| Japan | 969.1 | 1,191.9 | -18.7 | 9,595.3 | 12,751.2 | -24.7 |
| South Korea | 1,258.2 | 1,475.2 | -14.7 | 6,353.4 | 7,485.6 | -15.1 |
| Asia total | 27,526.1 | 27,699.7 | -0.6 | 239,143.4 | 232,822.5 | 2.7 |
| Europe | 1,650.5 | 3,451.3 | -52.2 | 19,215.6 | 33,432.6 | -42.5 |
| MENA | 1,303.0 | 2,378.1 | -45.2 | 14,649.5 | 21,016.6 | -30.3 |
| S/Latin America | 562.1 | 377.0 | 49.1 | 4,752.3 | 6,796.7 | -30.1 |
| N America | 151.1 | 230.7 | -34.5 | 1,614.6 | 2,411.3 | -33.0 |
| World total | 31,192.8 | 34,136.9 | -8.6 | 279,375.4 | 296,629.4 | -5.8 |
| Source: Brazil customs | ||||||
