FOCUS: Is Brazil iron ore's Black Swan?

Brazilian iron ore supply will be one of the key risk factors for market participants this year, especially with concerns rising further after a worsening of the Covid-19 pandemic in Brazil.

The country reported a record 19,951 new cases of Covid-19 and 888 death in a single day on Wednesday May 20.
The Latin American country had 291,579 confirmed cases on Wednesday, according to its health ministry. Brazil now has the third-highest number of infections after the United States and Russia.
Sources said that the limited measures taken to control the spread of Covid-19 in Brazil could affect the country’s iron ore shipments, which had already been in a tight supply situation since last year.

A trading source in southern China said Brazilian supply was a key risk factor now, especially after Brazilian President Jair Bolsonaro called for an end to the country’s lockdown, in opposition...

Published

Zihao Yu

May 22, 2020

08:08 GMT

Singapore