Mining giants' production cuts drag down global iron ore supply
According to the information resources network, Brazil exported 22.18 million tons of iron ore in March, down 26 percent from the same period last year and the lowest level in six years. According to Brazilian media reports, the sharp drop in exports was mainly due to production cuts by Vale, the Brazilian iron ore giant, after a dam break in January.
Vale is the world's largest iron ore producer. After a dam break in January, the company has shut down more than 90 million tons of annual capacity. Vale said it expected exports to fall by 75 million tons of iron ore and production by 20 percent this year. BHP Billiton, another big producer of iron ore, has also been affected. The company said it is estimated that the company's iron ore production will be reduced by 6 million to 8 million tons due to tropical cyclone attacks on Australia. In addition, Rio Tinto Group also lowered its iron ore shipments forecast by 14 million tons. In March, Australian iron ore shipments fell to 57.5 million tons, a three-year low. According to media reports, the giant's production cuts mean that other producers must meet the supply gap for iron ore, but that may not change quickly. South Africa's exports rose to 5.2 million tons in March from 4.9 million tons in February, while India's exports almost doubled in March, but only 1.3 million tons.
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