Brazil: Vale's Suspension of Operation at Ferrous Resources ; Expected Impact of 4 MnTpa

World's largest iron ore miner Vale on 15th Aug'19 , reported that it has temporarily shut operations at its Viga concentration plant, which is part of newly acquired Ferrous Resources do Brasil (acquired on 1st Aug'19), due to permit issues. The operation halt is owing to inconsistency in documents related to the operation permit from the municipality of Jeceaba.

However, the operation halt will not affect Viga mine and is not relating safety of the dialing dam or Ferrous operation. As per the miner, the operation halt is expected to cause a loss of about 330,000 MT/month equivalent to 3.96 MnT/year.

Spot Iron Ore prices inch up towards weekend on improved trades

Amid easing concern by largest miner, the sport iron ore fines index witnessed at USD 89.55/MT, CFR China, yesterday (16th Aug) as against USD 88.8/MT, CFR China witnessed on 15th Aug. However, the prices have dropped on weekly basis, the iron ore index price was witnessed at USD 94.8/MT, CFR China last weekend.

Dalian iron ore future rebounded

Dalian iron ore future with Jan'20 expiry climbed slightly to 626.5 yuan/MT yesterday.