It’s no secret to any of us that the Australian mining industry has been stuck in a slump. Although we posted recently about some hopeful signs, we haven’t yet seen signs of an overall turnaround. Our newest concern is that the Brazilian mining industry could soon join them in a prolonged slump.
If another downturn comes, it may not be entirely the mining industry’s fault. In a recent article titled “When Will Brazil Get Better?” Forbes reports that overall, Brazilian equities have sunk 40% since July of 2015, with buyers “chasing the bottom.” Reports of government corruption have been rampant (as we’ve already cited in other posts), and concerns regarding public safety are on the rise.
Amidst all of these national concerns, the mining industry is facing its own woes. News of accidents and chemical waste spills have been affecting stocks, and these dips have been further compounded by the retreat of the Brazilian real.
Shares of Vale SA are down by 4.64% to $2.78 in early-afternoon trading… as some U.S. traded Brazil-based stocks tumble today due to the decline in the real, which was spurred by the economic distress in China (The Street).
Obviously, all of these factors working together have done nothing to help the mining industry in Brazil grow and maintain growth. If anything, the opposite is true. It’s our hope to see these trends turn around in the days to come so that the sort of slump we see in Australia does not repeat itself in Brazil.
Remember that we carry a full complement of OTR tires for all of your mining needs. We routinely ship tires to mines throughout Brazil and the rest of South America. Feel free to contact us with any questions or comments that you might have or to hear about our current deals.
Image credit: By Source, Fair use, Wikipedia