Brazil’s mineral production in 2023 is expected to not differ much from previous years, according to Júlio Nery Ferreira, director of sustainability and regulatory affairs at the Brazilian Mining Institute (Ibram). The country produced 1.05 billion tonnes of mineral products in 2022, a decrease of 12% compared to 2021. However, revenue and earnings from exports are expected to exceed the previous year’s performance, when the Brazilian mining industry earned BRL 250 billion ($45.5 billion) and generated revenues of $41.67 billion from international sales, a decrease of 27.9% from 2021. The decrease in shipments in the first quarter of 2023 is directly correlated to reduced ore extraction due to excessive rainfall, according to Nery. However, international prices are pretty much pegged to Chinese demand, which accounts for more than 50% of global steel production and is the destination for 62% of Brazilian iron. In the first quarter of 2023, the Chinese economy exceeded expectations, growing by 4.5%, promoting a recovery of international ore prices.
Sources: Valor Econômico/Datamar News