Brazilian term supply hit by Vale halting production units

摘要

Vale’s announcement on Tuesday to decommission its upstream dams and halt certain production units in its Southern System, with an estimated impact of about 40 million mt/year of iron ore, resulted in further concerns over the longer term supply of Brazilian fines, market sources said Wednesday. March TSI iron ore swaps surged to $85.50/dmt on Wednesday's morning session, up $7.05/dmt from Tuesday at 5.30 PM Singapore time. Iron ore future contracts listed on the Dalian Commodity Exchanges reached the upper limit in five minutes after the start of Wednesday's morning trading session.