A Deeper Look At Brazil’s Commodity Industry

Page 1 of 3

A Deeper Look At Brazil’s Commodity IndustryDue to better governance practices and a commodity boom, Brazil’s economy has enjoyed incredible growth over the past 20 years. Brazil is now the largest economy in Latin America and the sixth or seventh largest economy depending upon the metric used. On the other hand, while Brazil’s GDP per capita has improved, it still ranks at a relatively low 64th in the world – meaning that it is a large economy, but not an especially wealthy one yet (at least not uniformly so). While Brazil has made a concerted effort to build up its manufacturing sector (and reduce the risk of being trapped as a commodity-driven economy), minerals, energy and agriculture are still very significant to the Brazilian economy, as well as the larger global economy [for more commodity news and analysis subscribe to our free newsletter].

Mining

Mining is still a significant industry within Brazil, as it accounts for nearly 4% of GDP and about 6% of employment. Nearly 20% of the country’s exports consist of various minerals and metals, and Brazil is a leading producer of many key industrial commodities.

Iron ore is the most significant commodity with Brazil. The country produced over 370 million tons of iron ore in 2010, making it the third-largest producer in the world (after China and Australia). Iron ore alone is more than 15% of Brazil’s export value (with about half of it going to China), and most of it is mined in the three states of Minas Gerais, Maranhao and Para. While Brazil is best known for its iron ore exports, it’s also a large and increasingly significant producer of steel (currently #10 in the world) [see also A Deeper Look At Australia's Commodity Industry].

While iron’s importance to the global steel trade is well known (as is Brazil’s importance in the iron trade), much less well-known is niobium. Niobium is used in a variety of steel and nickel alloys, particularly those that need to resist considerable heat and mechanical stress. Niobium doesn’t leap off the page in terms of dollar contributions to Brazil’s exports, but Brazil currently produces more than 90% of the world’s supply.

In terms of export value, gold comes next after iron ore for Brazil. The country isn’t a major gold producer (55 tons in 2011 was good for 13th place in the world), though the fact that its reserves are the 7th-largest in the world suggests production could still increase from current levels.

Brazil also produces a significant amount of other industrial metals and minerals. Although Brazil is not a top-10 producer of copper, it does find a place among the country’s top mineral exports. Brazil is the third-largest producer of bauxite in the world (and holds more than 10% of the world’s reserves) behind Australia and China, and is the sixth-largest producer of aluminum.

Page 1 of 3
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!