Iron ore prices fell back sharply again on Thursday
on the back of rising port inventories and clear signs that supply has caught
up with particularly strong demand from China.
According to Fastmarkets MB, benchmark 62% Fe fines
imported into Northern China were changing hands for $122.36 a tonne on
Thursday, down 6% since Monday.
“It’s now a turning point,” Ban Peng, an analyst at
Maike Futures told Bloomberg News:
“Recent exports from Brazil have been slightly better
than our expectations, and supply from the top miners including Vale SA should
increase in the fourth quarter, which is typically a peak season. ”
According to Shanghai
SteelHome, iron ore port inventories rose to 119 million tonnes
last week, the highest in five months. Stockpiles could increase further in
September and October as congestion at Chinese ports eases.
Vale
ramp up
Vale (NYSE: VALE) said on Wednesday it expects
to reach iron ore capacity of 400 million tonnes per year by
increasing output across its operations.
The company currently has the capacity to produce 318
million tonnes a year. In 2018, before the Brumadinho dam collapse,
Vale produced 385 million tonnes.
In an investor site visit presentation, Rio de
Janeiro-based Vale also said it has a target of 450 million tonnes per year “in
the future.”
Source: mining.com