Brazil’s mining sector is likely to be the first to rebound from the economic shock of the coronavirus outbreak due to large iron ore capacity and already-growing demand from China, the president of industry association Ibram told Reuters.
Nonetheless, Flávio Penido said there could be a negative impact on Brazilian production if the government does not curb the outbreak’s spread.
“The mining sector is the sector that will certainly be the first to respond for the recovery of the Brazilian economy ... due to the installed capacity and short-term recovery capacity,” said Penido.
“China has low stocks of steel, low stocks of high-grade Brazilian ore. And it is resuming ... and the impact is on prices.”
Penido said Ibram’s aim is to reach an annual production capacity of around 450 million tonnes of iron ore in the coming years, compared to the current 410 million tons. Ibram’s 130 members include Vale, Anglo American, Cia Siderurgica Nacional and Gerdau.
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