Brazil Iron ore production tumbles 24% in February
Thursday, 05 April 2012 | 00:00
Iron ore production in Brazil dropped by 24% in February, as per the latest data released by the country's iron ore producer's association. Brazil is one of the world's largest producers and exporters of Iron ore.
Brazil's mining companies exported 16.61 million metric tonnes of iron ore and pellets in February. This is a more than 24% decline from 21.89 million metric tonnes exported during Feb 2011. Vale and MMX, two leading Brazilian Iron ore miners, stated that the cause of reduced production was the heavier than usual rains in the Minas Gerais region in January. This led to lesser availability of ores for exports.
Meanwhile, the iron ore market is waiting for indications of Chinese interest. Traders are waiting to see a strong pickup in Chinese steel demand. Since only this could set the stage for increased demand for iron ore from China and help boost prices.
In India, high export taxes imposed by the government continued to discourage exports of Iron ore. The country's mineral producer body- FIMI-has requested the government to rollback of export duties on the argument that there is an 82 million tonnes of surplus in the market.
Source: Commodity Online
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