BMI predicts Brazil's iron ore production growth will rebound in the coming years.

BMI predicts that after the contraction and stagnation from 2018 to 2020, Brazil's iron ore production growth will rebound in the coming years.

This is mainly due to (1) lower production and operating costs; (2) Solid project reserves; And (3) factors such as the high-quality endowment of Brazilian iron ore. And the growing popularity of China's steel producers will help Brazil's iron ore production.

BMI predicts that from this year to 2027, Brazil's iron ore production will grow at an average annual rate of 3.4%, from 56.1 million tons to 482.9 million tons.

In the long run, Brazil's production growth will slow down, with BMI predicting an average annual growth rate of 1.2% from 2027 to 2032, and an annual production of 507.5 million tons by 2032.

BMI also predicts that Gelado in the Serra Norte mining area of Vale will increase its production this year, while N3 project is expected to start in 2024.

The S11D project being exploited by Vale has increased its output in the first three quarters of this fiscal year, leading to a year-on-year increase of 5.8% in iron ore output, reaching 66.7 million tons; It is expected that the project will increase production capacity by 30 million tons per year.

In general, the huge reserves of Caraga provide a solid foundation for tapping the production potential in the future.