Brazil breaks records for the supply of iron ore

Iron ore shipments from Brazil rose about 31 percent in the last week to 8.33 million tonnes, according to data released by the Standard Bank.
Standard Bank strategist Mellinda Moore said the bank believes Vale is seeking to increase shipments of stockpiled material ahead of the expected rainy season. In addition, the company's recently commissioned Karajas mine could boost total production in 2015 by 10 million tonnes.

The company expects to supply about 340 million tonnes of iron ore in 2015, which exceeds the company's production targets of 327 million tonnes achieved in 2014. At the same time, initially last year it was supposed to reach the shipment of 321 million tons, but at the beginning of the month the figures were revised upward, based on the assessment made based on the results of the volumes fulfilled in the third quarter.

At the same time, Anglo American also began exporting ore from its Minas Rio project in Brazil. Brazil exported about 26 million tonnes of iron ore in November, according to foreign trade data from SecEx, slightly down from 31.78 million tonnes in October and 30.9 million tonnes exported in November 2013.

One Morgan Stanley analyst said the main factor driving the decline in iron ore prices is the increase in iron ore supplies from Australian miners. Another problem was the decline in demand from the largest consumer of this product, China. According to reports from Citi Group Inc, iron ore prices may drop below $ 60 per ton in 2015.