On the supply side, due to the dam failure of the BrazilianVale Mining Group (VALES) and the subsequent mine shutdowns in early 2019,Brazil's iron ore production may fall by 10% this year, and the situation nextyear is not clear. Also affected is Brazil's iron ore export trade. Brazil'siron ore exports in April have fallen to a seven-year low to 18.34 milliontons, compared with 25.88 million in the same period last year. In March thisyear, exports were 22.18 million tons.

On the demand side, affected by factors such asinfrastructure stimulus, domestic steel product output has reached a new highthis year. In April 2019, domestic steel output was 102.05 million tons, ayear-on-year growth rate of 11.50%. The monthly output reached a record high,and the year-on-year growth rate continued to increase. Among them, the outputof crude steel was 85.03 million tons, a year-on-year growth rate of 12.70%.The monthly output reached a record high, and the year-on-year growth ratecontinued to climb.