Iron ore prices sold to China skyrocketed by 29%! Brazil, Australia "lie down to make money"?

Release time：May 08, 2019 From：admin

According to the latest report on May 7 , iron ore prices are gradually rising in the case of reduced iron ore supply in Brazil and Australia , and Brazil and Australia will become big winners in the global turmoil. Previously, the iron ore futures of the Dalian Commodity Exchange once fell 1.9%, but the final closing price was only 1 yuan lower than the previous closing price. It can be seen that the demand for iron ore is still extremely strong.

According to official Brazilian trade data, Brazil's iron ore shipments in April were 18.34 million tons, a 29% decrease from the same period last year. Ship tracking and port data compiled by Refinitiv show that Brazilian iron ore exports in the first four months of 2019 were 97.2 million tons, down from 111.9 million tons in the same period of 2018. The reduction in the supply of Brazilian iron ore is becoming one of the factors driving the rise in iron ore prices.

Nothing is unique! In Australia, weather-affected, iron ore supply is also affected. Data show that Australian iron ore exports in the first four months were 259 million tons, down from 280 million tons in the same period last year. As a “country on iron ore”, the reduction in Australian iron ore supply has caused an extremely severe blow to global supply.

The two major iron ore exporters, Brazil and Australia, fell by 3,570 tons in the first four months of 2019. China, one of the big buyers, will naturally be affected. Data show that China's iron ore port inventory fell from 162 million tons in June last year to 133.6 million tons this week. According to Refinitiv, the supply of iron ore arriving in China in April was 68.6 million tons, the lowest monthly total since December 2016.

In the face of an almost steady situation, it is estimated that Brazil and Australia will not think about increasing supply in the short term. According to Argus Media, the 62% iron ore benchmark price delivered to China closed at $94.05 per tonne on Monday, up 29% from the end of last year, but down 0.8% from the previous trading day. If Brazil and Australia continue to maintain such a small supply of iron ore, it is estimated that big buyers will have to find new suppliers, and then Brazil and Australia will want to save buyers again, which is a bit difficult.