Brazilian iron ore exports recover

Brazil exported 16.17mn t of iron ore in the first 12 working days of May, data from the country's industry, foreign trade and services ministry show, indicating that export volumes may be returning to last year's levels.

Brazil exported 34.62mn t of iron ore in May last year.

Brazilian iron ore exports started declining in March this year following the 25 January tailings dam accident at Brazilian mining company Vale's Feijao dam in Minas Gerais province. The accident led to the closure of some of Vale's iron ore mines in the province, including its second-largest mine Brucutu.

While Brazilian iron ore exports in January and February continued to grow, Brazil's iron ore exports in March fell to 22.18mn t, down by 26pc on the year, while its April exports of 18.34mn t were down by 29.1pc on the year.

Vale has forecast its iron ore sales to fall by 13-20pc this year, equivalent to a drop of 50mn-75mn t. Sales are likely to be around 307mn-332mn t in 2019, down from 382mn t last year.

Vale earlier this week suspended freight transport on a portion of its Vitoria-Minas railway as a precautionary measure against the risk of a breach at the Sul Superior tailings dam, which is connected to the closed Gongo Soco iron ore mine.