Brazil will export a record amount of iron-ore this year as companies such as Vale SA boost shipments to help satisfy rising demand for the steelmaking ingredient from China, Banco Santander SA said in a note to clients. Brazil is likely to surpass the record 281.6 million tons of ore shipped in 2008 after exporting 30.2 million tons last month, an 18 percent increase from a year earlier, Santander analysts led by Felipe Reis wrote today in a note to clients.
"Iron ore shipments should remain strong over the next couple of months, leading to the best year ever in terms of Brazilian exports of the commodity," the analysts said.
Rio de Janeiro-based Vale, the world??s largest iron-ore producer, will continue to enjoy "strong earnings momentum" during this quarter and through 2011, the analysts said.
The company is Santander's "top pick" among Brazilian metals and mining companies, they said.