Brazilian mining sector increases sales by 98% to US$29 billion in the first half of 2021-Ibram

RIO DE JANEIRO, BRAZIL – Mining companies in the country invoiced R$149 (US$29) billion in the first half of this year. The increase, of 98% in the period, was driven by the acceleration of the dollar and the evolution of iron ore prices, the main Brazilian mineral product.

With this performance in the first half of the year, it is estimated that the revenue of the mining sector will reach R$300 billion by 2021. The data were released earlier by the Brazilian Mining Institute (Ibram).

The president of Ibram, Wilson Brumer, pointed out that iron ore is the main product of the sector and the high prices of the commodity in the international market was a key factor for the good performance of the mining companies’ revenues.

According to him, the same dynamics were repeated in other minerals. The average price of copper, for example, rose 65% in the semester, nickel showed a high of 41%. “In general, commodities had a significant increase in prices in the period”, he said.

The revenue from iron ore extraction reached R$107.5 billion, an increase of 135%. Gold, the second most important product in the mining sector, had revenues of R$13.7 billion, an evolution of 46%. Copper totaled R$ 8.1 billion, an increase of 52%.

According to the data, the mineral production presented a growth of only 2% in the semester, reaching 535 million tons.

According to Ibram, exports from the mineral sector totaled US$27.6 billion in the first half of this year. The performance represented a high of 91% in relation to the same period in 2020. In volume, foreign sales grew 14% in the first half of the year, reaching 174.5 million tons.

Iron ore continues to be the main product on the export agenda of the mining sector. In the period, foreign sales of the commodity reached 167.1 million tons, a growth of 15%. This volume yielded revenue of US$21.5 billion, an increase of 126%.

Brumer pointed out that for the year the estimate is that exports will continue at a high level, because Brazil’s major trading partner, China, should grow by about 8.5% in 2021.

“China is the largest steel producer in the world and with the GDP expectation for this year, we are not seeing a change in the scenario this year,” said Brumer.

According to him, the estimated average price for iron ore in 2021 is $200 a ton. “It depends a lot on the increase in supply for iron ore this year to stabilize the price at a lower level. But, there is no big news about that,” he stressed.