Brazil: Mineral exports earnings reach USD 11.62 bn in 3Q22

Brazilian mineral exports totaled US$ 11.62 billion in the third quarter of this year, a retraction of 36.8% from the same period last year. Compared to the previous quarter of 2022, there was an increase of 0.4%.

Imports totaled US$ 4.77 billion in the third quarter of this year, an increase of 86.7% over the result calculated in the same quarter of 2021. However, compared to the second quarter of 2022, there was a drop of 23.2%.

These figures were released on October 20th by the Brazilian Mining Institute (Ibram). The trade balance of the mineral industry (the difference between ore exports and imports) corresponds to 51% of Brazil’s balance in the third quarter of 2022, representing US$ 13.4 billion. The results for this quarter decreased in dollar terms by 56.4% compared to those for the second quarter.

The director of Sustainability and Regulatory Affairs at Ibram, Julio Nery, attributed this sharp drop in imports to the increase in the international price of mineral commodities, mainly potassium, due to the war in Ukraine. Potassium has great potential to grow among Brazilian imports. The increase in the exchange rate also contributed to the reduction of purchases abroad.

Mineral exports to China, Brazil’s primary buyer, fell by 43.6% in value compared to the third quarter of 2021 and increased by 2.9% in terms of volume. Compared with the second quarter of this year, there was an expansion of 34.3% in tons and 6.9% in value.

Iron ore

In the third quarter of 2022, iron ore prices decreased by 37.3% compared to the same period last year and by 25.8% compared to the second quarter of this year. Iron ore is the main product of the sector exported by Brazil. Except for nickel and zinc, Ibram data show that the prices of other mineral commodities are also lower than in the third quarter of 2021.

Particularly for iron ore exports, the dip in value from the same period last year reached 44.7% in the third quarter. In comparison to the second quarter of 2022, there was also a value decline of 3.2%. On the other hand, there was an increase of 1.5% and 23.3% in tonnes exported abroad, respectively. In terms of dollars, iron ore exports accounted for 70.5% of Brazilian exports.

Please find below the track record of the volume of Iron Ore (HS 2601) exported by Brazil between January 2019 and August 2022, according to data obtained from the DataLiner service.

Iron Ore Exports | Jan 2019 – Aug 2022 | WTMT

Source: DataLiner (click here to request a demo)

In tonnage, Brazil’s reduction in mineral imports reached 20.5% compared to the third quarter of last year and 23.3% compared to the second quarter of this year. There was also a significant increase in the cost of potash imports compared to the third quarter of 2021, at around 132.96%, according to Ibram. Potash accounted for the largest share of mineral imports (62.1%), followed by coal (24.3%).

Source: Agência Brasil

To read the full original article, please go to: https://agenciabrasil.ebc.com.br/economia/noticia/2022-10/exportacoes-minerais-somam-us-1162-bi-no-terceiro-trimestre

Sharing is caring!