Brazilian mining stepped up exports in 2020

Mineral products exports from Brazil climbed 11% in revenue and 2% in volume last year, driven by purchases from China. Iron ore’s high prices benefited results.

Agência Brasil
pauta@ebc.com.br

São Paulo – The volume of mineral products exported from Brazil stepped up by 2% year on year in 2020, Brazilian Mining Institute (IBRAM) reported. Revenue from exports climbed by 11% from the previous year, reaching USD 37 billion. China secured its position as the top destination of iron ore from Brazil. The Asian country had accounted for 62% of exports in 2019. In 2020, it accounted for 72%.

IBRAM said that, although production in 2020 was not higher than in 2019, last year’s financial results were benefited by the global change in prices and the higher price of dollar. After Australia, Brazil is the world’s second largest iron ore producer – the product’s price skyrocket by 60% last year. Its tonne finished 2020 costing USD 155.84.

Revenue posted a year-on-year 36% growth even amid the COVID-19 pandemic, reaching BRL 209 billion (USD 38.7 billion). The good performance was leveraged by last year’s fourth quarter. Pará and Minas Gerais, the country’s highest producing states, were mainly responsible for the increase.

The biggest changes were posted in iron ore and gold. Iron ore production fetched BRL 138.7 billion (USD 25.7 billion), up 39% from 2019. Gold was up 76%, at BRL 23.2 billion (USD 4.3 billion). Despite the higher revenue, the volume exported remained virtually unchanged. In 2019, 985 million tonnes were sold, while 2020 saw 1.009 billion tonnes exported.

Translated by Guilherme Miranda

Agência Vale

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