Brazil and Australia, two of the main iron ore producing countries in the world, can stimulate their economic growth through exporting iron ore, a raw material for national infrastructure, while the global economy is recovering.

China, as a major iron ore importer in the world, has contributed a lot to the economic development of iron ore producing countries, including Brazil and Australia, with its strong demand. However, after China started to implement restriction measures on steel production, the imports of iron ore decreased.

According to official statistics from Brazil, the country’s iron ore exports in July totaled around 31.7 million tons, dropping by 6.6% year on year. It was assumed that China’s steel production limits caused the decrease.

Iron ore is viewed as the main source of Brazil and Australia’s economy. It was expected the two countries’ economic development will be impacted once China decreases its demand for iron ore. In addition, the current iron ore prices have been dropping due to the increasing global iron ore supply, so it will be a challenge for Brazil and Australia to drive their economy by exporting iron ore in the future.