Ore Imports Decline in Q3 Amid Reduced Coal Demand, Reports IbramOct, 19, 2023 Posted by Gabriel Malheiros
Ore imports declined by 48.4% in value in the third quarter compared to the same period in 2022, totaling $2.5 billion. In terms of volume, there was an increase of 10.9%, reaching 10.71 million tonnes. According to the Brazilian Mining Institute (Ibram), the main reason for this contraction was the steel industry’s reduced coal demand.
In the third quarter, coal imports dropped by 35% in value compared to the same period in 2022, totaling $740.6 million. Compared to the second quarter of this year, there was a 43% decrease. In terms of volume, there was a 7.8% increase compared to the third quarter of the previous year but a 24.1% decrease compared to the second quarter of 2023.
“The steel industry has been complaining about the entry of Chinese steel, with many even calling for the return of import taxes. We believe that a significant portion of this decline in imports is due to the reduced import of coal by steel companies, which are producing less in Brazil,” said Julio Nery, Director of Sustainability and Regulatory Affairs at Ibram.
Regarding the international scenario, Raul Jungmann, the CEO of Ibram, mentioned that the current tension caused by conflicts between Israel and Hamas brings insecurity to the sector. “If the conflict escalates to the West Bank or Syria, it’s a powder keg. It will disrupt, create instability, and lead to price fluctuations,” Jungmann stated.
Ibram reported that mining sector investments are estimated at R$50 billion between 2023 and 2027, compared to R$40.4 billion between 2022 and 2026.
Nery noted that there has been an increase in recent announcements of investments in mining projects for minerals used in the energy transition, such as lithium, copper, and nickel. However, most are medium-term projects and are still in the research phase.
Jungmann stated that the Brazilian Development Bank (BNDES) is developing funds to help the sector structure the critical mineral supply chain, a market that generates $300 billion annually worldwide and is expected to reach $1 trillion in the coming years.
Source: Valor Econômico
To read the original publication, visit: https://valor.globo.com/empresas/noticia/2023/10/18/importacoes-minerais-caem-no-3o-tri-com-demanda-menor-por-carvao-diz-ibram.ghtml
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