FOCUS: Brazilian iron ore supply concerns re-emerge after Covid-19 grips country

Concerns about Brazilian iron ore supply resurfaced among market participants this past week due to expectations that exports of the product would be impeded by Covid-19-related lockdowns in the South American country and the rising number of infections.

Sao Luis was the first major Brazilian city to enter lockdown this week. It is located in the country's northeastern state of Maranhao, to the east of iron ore-producing Para state. Ten cities in Para state, including its capital Belem, have also entered lockdown.
Mining and port operations, however, were not heard to be impacted by the lockdown. Both the federal and state governments have decreed mining, processing, commercialization and shipping essential operations. Despite that, the proximity of the lockdown to iron ore mines has some participants concerned about supply.
Para state is home to the Carajas iron ore mine that forms part of Vale’s Northern System operations. Ore produced at Carajas, including the flagship high-grade brand Iron Ore Carajas (IOCJ), is shipped to global markets through the Ponta da Madeira terminal, located in Maranhao.

Published

Deepali Sharma

Karen Shi

May 08, 2020

19:09 GMT

Singapore