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FEATURED Q&A   

FROM THE FEBRUARY 26, 2015 ISSUE

What are the consequences for Latin

America from lower iron ore prices?



Iron ore prices are down by almost half from a year ago to about $60 per metric ton and are hovering near five-year lows amid concerns about the medium-term supply and demand outlook for the commodity, with many analysts expecting prices to stay between $60 and $65 per metric ton for the next two years. How are lower iron ore prices affecting companies? What do lower prices mean for major iron ore producing economies in the region, such as Brazil?

Alicia García-Herrero, chief economist for emerging markets at BBVA Research: "We expect the developments in China to have significant implications for major iron ore producing economies in the region. China is the world's largest consumer of iron ore, importing more than 930 million tons in 2014. The country's largely investment-led growth model through much of the last decade helped to fuel a commodity super cycle, propping up iron ore prices and benefiting commodity exporters. Brazil, one of the largest producers of iron ore in the world, together with Australia, is a clear example. Brazil exported 170 million tons of iron ore to China in 2013, compared to 60 million tons in 2005. According to our Commodity Concentration Index, this would imply that Brazilian iron ore exports' dependency on Chinese demand increased by 48 percent between 2005 and 2013. Other iron exporters in the region also saw their dependency increase during the same period, including ..." MORE


ABOUT THE LATIN AMERICA ADVISOR

The Dialogue publishes the Latin America Advisor every business day for a distinguished membership of informed corporate leaders, scholars and government officials invested in Latin America's development and future.

The Advisor's highly regarded Q&A section covers questions submitted by subscribers themselves. Commentators regularly include heads of state, business leaders, diplomats, economists, analysts, and thought leaders from around the world.

More than 100 of the world's largest and fastest-growing companies subscribe to the Advisor, including Apple, Citigroup, ExxonMobil, Mitsubishi, Standard & Poor's, among many others.

The Advisor also publishes sector-specific editions for energy and financial services investors in the region.


Staff Contact: Erik Brand at 952.892.0177 or ebrand@thedialogue.org.


OUR SUBSCRIBERS

More than 100 of the world’s largest and fastest-growing companies are members of the Corporate Circle and subscribe to the Latin America Advisor, including:


             

 
 
           

        
   

VIEW ALL SUBSCRIBERS | MORE ON THE CORPORATE CIRCLE


SECTORAL PUBLICATIONS


The Advisor also publishes sector-specific titles in energy and financial services trends affecting the region.

 

 


Diego Arria
Director,
Columbus Group

Genaro Arriagada
Nonresident Senior Fellow,
Inter-American
Dialogue

Joyce Chang
Global Head of
Emerging Markets Research, JP Morgan Chase

W. Bowman Cutter
Former Partner,
E.M. Warburg Pincus

Dirk Donath
Senior Partner,
Aimara Capital

Jane Eddy
Managing Director,
Corporate & Government
Ratings Group,
Standard & Poor's

Marlene Fernández
Corporate Vice
President for
Gov't Relations,
Arcos Dorados

Peter Hakim
President Emeritus,
Inter-American
Dialogue

Donna Hrinak
President,
Boeing Latin America

Jon Huenemann
Vice President,
US & Int'l Affairs,
Philip Morris

James R. Jones
Co-Chair,
Manatt Jones
Global Strategies

Craig A. Kelly
Director, Americas
Int'l Gov't Relations,
Exxon Mobil

John Maisto
Director,
US Education Finance Group

Nicolás Mariscal
Chairman,
Grupo Marhnos

Thomas F. McLarty III
President,
McLarty Associates

Carlos Paz-Soldan
Partner,
DTB Associates

Beatrice Rangel
Director,
AMLA Consulting

José Antonio Ríos
Chief Executive Officer, Vadium Technology, Inc.

Gustavo Roosen
Chairman of
the Board,
Envases Venezolanos

Andrés Rozental
President,
Rozental & Asociados and Senior Fellow,
Brookings Institution

Shelly Shetty
Head, Latin America Sovereign Ratings
Fitch, Inc.

 

 

Erik Brand
Publisher and Director,
Corporate Program
TEL: 952.892.0177952.892.0177
EMAIL: ebrand@thedialogue.org

Gene Kuleta
Editor
TEL: 202.463.2920202.463.2920
EMAIL: gkuleta@thedialogue.org

Megan Cook
Reporter and Assistant Editor
TEL: 202.463.2562202.463.2562
EMAIL: mcook@thedialogue.org