IRON ORE DAILY: Vale’s predicted production cuts send prices above $80 per tonne

Seaborne iron ore prices surged above $80 per tonne on Wednesday January 30 amid market bullishness after Vale announced production cuts of 40 million tonnes per year due to the decommissioning of all its upstream tailings dams in Brazil.

MB 62% Fe Iron Ore Index: $82.53 per tonne cfr Qingdao, up $3.84 per tonne. MB 62% Fe Pilbara Blend Fines Index: $83.37 per tonne cfr Qingdao, up $3.84 per tonne. MB 62% Fe Iron Ore Index-Low Alumina: $84.09 per tonne cfr Qingdao, up $3.90 per tonne. MB 58% Fe Premium Index: $75.44 per tonne cfr Qingdao, up $3.85 per tonne. MB 65% Fe Iron Ore Index: $97.60 per tonne cfr Qingdao, up $5.40 per tonne. MB 62% Fe China Port Price Index: 613 yuan per wet metric tonne (implied 62% Fe China Port Price $81.18 per dry tonne), up 21 yuan per wet metric tonne. Key drivers Vale said early on Wednesday morning Beijing time that 40 million tpy - 10% of its targeted output for 2019 - was likely to be cut as a result of its decision to decommission its 10 upstream dams over the next three years, after the deadly rupture of a tailings...

Published

July Zhang

Alex Theo

January 30, 2019

13:58 GMT

Shanghai, Singapore