THE IRON ORE MARKET IN BRAZIL: OPPORTUNITIES AND CHALLENGES AMID THE INTERNATIONAL SCENARIO AND A TRADE WAR

Abstract

Iron ore is one of Brazil's main mineral resources and can be considered the main source of the surplus in the Brazilian trade balance. This mineral resource is one of the main inputs for steel production and is therefore of utmost importance for infrastructure, the automotive industry, civil construction, among others. Over the years, Brazil has developed into one of the largest producers and exporters in the world, along with Australia and China, maintaining particularly significant trade relations with the Asian market. Iron ore is essential not only for the quantity produced or exported, but also for the social, economic and environmental impact of mining activities. Minas Gerais, Pará and Maranhão are the highlights in national production. The expansion of international demand for steel, resulting from the rapid urbanization process and growing investment in infrastructure in the emerging world, has made, and continues to make, Brazilian iron ore one of the protagonists of international trade. In 2023, Brazil exported around 370 million tons of iron ore, generating revenue of approximately US$ 32 billion, according to the MDIC. Even so, the sector faces significant challenges. The environmental impacts caused by mining activity, excessive dependence on China as a purchasing market, logistical bottlenecks and the growing demand for sustainable practices appear on the Brazilian radar. In addition, the trade war between the US and China is reshaping global trade routes and threatening to curb Brazilian competitiveness. Aspects such as exports, geopolitical impact, US actions, politics and competitiveness will be addressed, directly addressing the Brazilian market outlook, increased demand for iron ore, international scenarios and aiming to say how Brazil can stand out in the global scenario and address what the tariff war between the US and China may cause.