[ad_1]
© Reuters. The future of iron ore reached its highest level in 16 months on Monday, after the National Mining Agency ordered an increase in the price of iron ore, as Vale (SA :), the world's largest producer of this merchandise, will suspend the activities of its mine Córrego do Feijão after the fatal rupture of a dam.
The dam broke on Friday, releasing a stream of mud that invaded facilities. from the Vale Mine and razed a local community, making 58 deaths in total so far, in addition to the hundreds of missing.
The most traded contract in the iron ore market in the Dalian stock market rose 6% to 567%, 5 yuan ($ 84.23) per tonne, the highest level since September 2017 , before returning a portion of the gains and close with an increase of 2.8% to 550.5 yuan.
"The accident concerns Brazilian high iron However, I think that physical prices may not change as much as futures, because the market was very very calm (before the Lunar New Year)," said Analyst Richard Lu from the CRU consulting firm in Beijing. .
China, the world's largest consumer of iron ore used in steelmaking, is demanding a high quality, less polluting ore because of its campaign against pollution.
The Córrego do Feijão mine will be closed. Helen Lau, an badyst at Argonaut Securities, said that a 1.5% reduction in Vale's output would have a "negligible" impact on supply.
"In general, we do not expect a large The price of iron ore is the result of this fatal accident, because the Chinese demand for iron ore in the short term should be light because of the poor seasonality" she wrote in a note.
(Other reports of Muyu Xu in Beijing)
Fusion Media or anyone involved in Fusion Media will not accept any liability for loss or damage resulting therefrom. trust in the information, including data, quotes, graphics and buy / sell signals contained in this website. Please be fully aware of the risks and costs badociated with financial market transactions. This is one of the most risky forms of investing possible.
[ad_2]
Source link
