The iron ore sector is about to face a supply shock which should limit its expected second quarter price fall even as steelmaking activity wanes in Europe, analysts at broker Jefferies said Wednesday. “Supply disruptions (from COVID-19 production curbs) in India, South Africa and Canada alone will temporarily impact as much as 120 million mt/year of iron ore supply, which equates to 8% of seaborne supply and would be similar in magnitude to the peak of the 2019 supply shock following the Brumadinho tailings dam disaster and weather-related disruptions in Australia,” analysts led by Christopher LaFemina said in a note to clients.
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