Wednesday, November 18, 2009

Brazil To Raise Share Of Seaborne Iron Ore Market

Brazil will raise its share in the global seaborne iron-ore market more quickly than top exporter Australia in the next four years as Vale SA and Cia. Siderurgica Nacional SA expand output, Credit Suisse’s Etienne Lacroix said.

Brazil will boost exports of the steelmaking ingredient by 21 percent next year to 354.9 million metric tons, Lacroix, a New York-based Credit Suisse analyst, said in an interview yesterday. That compares with export growth of 8.5 percent to 421.6 million tons in Australia, he said. Brazilian export growth will outpace Australia’s at least until 2013, he said.

China will lead rising demand for iron ore as economic growth prompts steelmakers to rebuild stockpiles of the mineral after the global crisis that started last year. Total seaborne iron-ore demand will rise 10 percent next year to 1.02 billion tons and may reach 1.24 billion tons in 2013, Lacroix said.

Brazilian annual exports of iron ore may reach 443.3 million tons in 2013, while Australia may ship 549.6 million tons, he said.

Nacional Minerios SA, the mining unit of CSN, plans to invest $1.3 billion in two iron-ore pellet plants in Brazil set to start up in 2012 and 2014 to produce a combined 12 million tons a year, Charles Putz, chief executive officer of the unit, said yesterday.

Vale, the world’s biggest iron-ore producer, said Oct. 21 that it plans to invest $9.03 billion in Brazil next year to expand iron-ore, nickel and potassium output and start producing steel slabs in a joint venture with ThyssenKrupp AG.

Source: Bloomberg

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