iron ore: rise
with the pandemic
The history of iron ore in Brazil begins even in the colonial period, when expeditions known as entrances and flags that sought precious metals in the interior of the territory took place. Thus, over time this historic link continued, making the ore become of great importance on the Brazilian export list, so that, according to the Arab-Brazilian Chamber of Commerce, the Brazilian state is the second. largest producer, has the fifth largest reserve in the world and has iron as the third most exported product.
Growing Chinese demand for the product
Iron ore is the raw material for steel manufacturing, the basis of many industries, such as the automobile and household appliances, being considered essential for many countries, which causes a large flow of Brazilian exports to different regions of the world. According to the FazComex website, among the countries that lead the ranking of destinations for Brazilian iron, we see China highlighted, with 62% of imports, followed by Malaysia, with 8.1%, and the Netherlands, with 3 %, proving the Asian continent as the largest importer of this commodity.
Increased value and global need for the commodity
Additionally, with the arrival of COVID-19 there was a great increase in its value per kilo, having, according to the Statista website, a 100% readjustment between January 2020 and March 2021, and as one of the reasons for this increase one can mention the growing Chinese demand for the construction of more steel plants, due to the pandemic, and accompanied by the need to build more hospitals according to the G1.
Thus, this increase in the price of this commodity should benefit Brazil, through an improvement in the balance of trade, an increase in the profitability of product exporters and making ore-derived products more expensive, says a survey carried out by the Arab-Brazilian Chamber of Commerce
The importance of the performance of an international consultancy
Thus, iron ore is fundamental for the industrial development of countries, thus much sought after by heavily industrialized states such as China. With the arrival of the pandemic and the greater need to build industries to help in the area of health and the economy, there was a clear increase in the global need for the commodity, increasing its value drastically, benefiting countries that export this product, such as Brazil. Even with all this improvement, there is still a need to carry out a highly structured survey on this market, with companies that are dedicated to obtaining the best conclusions, such as Prisma, which through their services make the export dynamics much easier and more assertive. . .
By Lucas Fontes on 06/18/2021
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