Iron ore prices likely to stay high despite return of Vale's Brucutu, analysts say

The return to full operations of Vale’s Brucutu mine may not be enough for a major iron ore price downturn amid supply cuts in Australia and high demand from China, investment bank analysts said on Wednesday June 19.

Most estimates put iron ore prices above $90 per tonne cfr China for now, even as some 20 million tonnes per year of capacity return to the seaborne market. These volumes represent around 4.4% of Vale’s 450 million tpy capacity. The Brazilian Superior Court of Justice nullified a previous ruling that forbade Vale from using the Laranjeiras tailings dam at the Brucutu unit, the miner said on Wednesday. While Brucutu had been running at a rate just under 10 million tpy through dry processing, the decision will allow the mine to...

Published

Renato Rostás

June 20, 2019

08:10 GMT

São Paulo