Ore exports may rise

BRASILIA and SÃO PAULO-even after the immense human and environmental tragedy resulting from the bursting of a dam in the Valley in Brumadinho (MG), Brazilian exports of iron ore and derivatives should not be affected this year and may even increase, according to the technical assessment of the economic and industry experts heard by the associated press/Broadcast. The assessment is that the company has the capacity to replace the production lost with the closing of dams in other plants and that the high price in the global market can boost the export of the product. If confirmed, the increase in sales follows the movement that occurred after the breaking of the dam in Mariana (MG), in 2015. That year and the following three, exports of iron ore they hit successive record highs. Since 2012 product sales grow year after year. This week, the Valley has announced that it will close dams in Minas Gerais, which could reduce the company's production at around 40 million tonnes, or 10% of the total exported by Brazil last year. The technical assessment of the Government is that the company will be able to compensate for this reduction in those plants primarily with the mining activity of the Stop. The State is the leading producer of iron ore exported by Brazil today, accounting for 49% of sales, followed by Minas Gerais, with 37%. "The Valley's own condition to restructure this volume, she has stocks and will probably make a plan to keep the service to buyers," says the foreign trade Secretary Welber Barral. Quality in addition, the Brazilian product ends up being more defendant as higher yielding, as it has on average 62% iron content greater than the extracted in other countries. The highest destination of brazilian commodity is China, which bought 58% of the total exported by Brazil in 2018. According to the President of the Association of foreign trade of Brazil, Jose Augusto de Castro, the average price of $ $52 a tonne recorded in the Brazilian exports of iron ore last year, the production is compromised with outages would correspond to little more than $2 billion, equivalent to less than 1% of total sales. The 90% of exports Worth your production and iron ore, which is the third largest brazilian export product, accounted for 8.4% of the exports of the Country in 2018. Ore sales corresponded to a total of $ $20.2 billion in 2018, growth of 5.3% in comparison to 2017. Even with the environmental and social impacts of the tragedy in Brumadinho, experts do not believe that the Valley will lose space in the international market in the long run for any image problems. Ponder that China, the main buyer of Brazilian iron ore, would have hardly any your demand satisfied without the offer from Brazil.