Vale revises down 2019 iron ore shipment projections
Brazilian iron ore producer Vale has revised lower its shipment forecasts for this year, indicating tighter supplies for the rest of 2019 that may support seaborne prices.
Vale expects to ship 307mn-312mn t of iron ore, including pellet, for 2019, down from a previous forecast of 307mn-332mn t.
The news lifted the most active Dalian commodity exchange iron ore futures contract by 2pc in early trade today.
Vale expects sales of iron ore and pellet for October-December 2019 to be in a 83mn-88mn t range against 96.5mn t for the same period of 2018. Production and sales are expected to be at 70mn-75mn t during January-March 2020 compared with 67.7mn t in the first quarter of 2019.
Vale attributed the sequential fall in first-quarter 2020 shipments to seasonality, a gradual and safe return to operations of closed capacity and the company's focus on profit margins over sales volumes.
"Vale's pellet supplies to China are falling, which is supportive of Indian pellet prices," said the senior executive of an Indian pellet producer.
An accident at Vale's Feijao iron ore mine in Minas Gerais province on 25 January this year led to more than 200 deaths and the closure of some of its mines, tipping global iron ore supplies into a deficit.
The Argus ICX 62pc seaborne fines index has been supported above $80/dry metric tonne for most of the year since the accident. But it has traded below this price on 8 November and yesterday as ample seaborne supplies and concerns about winter sintering restrictions in China weighed on sentiment.
By Prasenjit Bhattacharya
source: Argus Media
Top News
Six last month
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Gold price faces worst week since 2021 as Fed signals no rate-cut rush
Gold loses some luster after Trump’s decisive win
Iron ore price flirts with key $100/t level on firm demand, China stimulus hopes
Hedge funds slash bullish wagers on gold over Trump election win
Resolute Mining says it will pay Mali $160 million in tax dispute
Families gather at South African mine shaft where hundreds are feared stuck underground
Higher silver supply to reduce global deficit by 4% in 2024
BHP to spend up to $14 billion on Chilean copper expansion
Chile’s rare salt flat fish faces threat from lithium mining project
British Columbia creates new mining ministry to tackle critical minerals amid doubts over capacity
China’s germanium, gallium ban could cost the US $3.4 billion
South Africa police standoff with illegal gold miners escalates
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iron ore price flirts with key $100/t level on firm demand, China stimulus hopes
Newmont sells Ontario gold mine to Orla for $850 million
BHP warns Australian mining not ready for low-cost competitors
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Chile’s rare salt flat fish faces threat from lithium mining project
British Columbia creates new mining ministry to tackle critical minerals amid doubts over capacity
Newmont sells Ontario gold mine to Orla for $850 million
BHP warns Australian mining not ready for low-cost competitors
Resolute Mining says it will pay Mali $160 million in tax dispute
Trump chooses oil fracking boss as energy secretary
Gold loses some luster after Trump’s decisive win
