Macro
Brazil's Corumba region eyes doubling iron ore exports to 10 million tons in 2024, driven by high river levels and infrastructure investments.
By Max Weldon
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Brazil's Corumba region is on the brink of significantly increasing its iron ore exports through Uruguay, with projections suggesting a potential doubling of shipments if river water levels remain sufficient. Navios South American Logistics, a major player in the Paraguay-Paraná Hidrovia system, has been informed by miners of their intentions to ship between eight million to 10 million tons of iron ore this year through its facility at Nueva Palmira port, Uruguay. This marks a substantial increase from the 4.1 million tons shipped in 2023. Angeliki Frangou, the company's chairwoman, highlighted the influx of new mining companies without competing interests in other Brazilian regions as a key driver of this growth.
Navios South American Logistics is planning a significant investment of about $300 million over the next decade to expand its operations in Uruguay. This expansion includes enhancing the Nueva Palmira facility, which handles a diverse range of commodities including grains, minerals, and liquids, and constructing new terminals in Montevideo's main port. These developments are poised to bolster Uruguay's cargo handling capabilities, further facilitated by the deepening of the Montevideo port and the advent of synthetic fuel projects. Frangou also hinted at the possibility of an initial public offering for Navios, emphasizing the strategic focus on scaling operations and broadening service offerings.
The iron ore market has witnessed a notable price rebound, with futures in Singapore hitting $118.10 a ton, following a 6% drop in exports from Fortescue Metals Group Ltd. This decline was attributed to operational disruptions, including an ore car derailment and adverse weather conditions. Despite these setbacks, Fortescue maintains its full-year shipment forecast, with optimism buoyed by signs of recovery in China's property market. This optimism is crucial, considering China's significant influence on global iron ore demand and the broader implications for economic recovery in the steel-intensive sector.
"There is a good flow of iron ore that will become almost constant. The reason for this is you have new participants — companies that don’t have competing mines in other areas of Brazil." "Navios plans to invest about $300 million over the next decade to expand its operations in Nueva Palmira — where it handles grains, minerals and liquids — and build terminals in Uruguay’s main port of Montevideo."
Finance GPT
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