Brazil Loses its Share in Global Iron Ore Market
Within a scenario altered by the Brumadinho disaster, Brazil’s share in the global iron ore market is expected to decrease from 25.2 percent to 24.2 percent by 2019, a loss is estimated at US$ 1.6 billion.
The dam tragedy led to the hardening of dam safety regulations and to a legal battle against the operation of several mines.
Meanwhile, Australia’s share is expected to increase from 54 percent to 56.7 percent.
According to a report issued by Australia’s Department of Industry, Innovation, and Science, producers in both countries hold high margins due to their large-scale, low-cost operations.
“The iron ore market is expected to continue to be dominated by ‘Big 4’ producers, with Rio Tinto, BHP, Vale, and Fortescue Metals Group (FMG) accounting for approximately 72% of the trans-oceanic market in 2024,” says the report.
Growth in Australian export volume is expected to increase by an average of 1.5 percent a year, from 847 million tonnes in 2018/19 to 874 million tonnes in 2020/21. In Brazil, the growth rate should be of 0.7 percent.
Before Brumadhino, the Brazilian rate was of 1.5 percent and the Australian rate of 0.3 percent.
Source: Rio Times