Vale supply reduction rattles iron ore market

摘要

Further concerns over Vale’s reduced supply drove seaborne iron ore prices higher Wednesday. S&P Global Platts assessed the 62% Fe Iron Ore Index at $85.05/dry mt CFR North China, up $5.10/dmt on day. The frontmonth February TSI swap up $4.40/dmt on day at $83.90/dmt. Vale's announcement of a reduction of about 40 million tons of iron ore in production annually from its Southern Systems as it sought to decommission its existing upstream dams resulted in increasing uncertainty over the iron ore supply, fuelling a volatile paper market.