Vale’s iron ore production is on fire. Literally
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The meteoric rise in iron ore prices has been triggered by a combination of factors, which includes reduced output from giant Brazilian iron ore miner Vale.
Poor Vale still can’t catch a break.
Yesterday a shiploader caught fire at Vale’s main iron ore export terminal at Ponta da Madeira in northeast Brazil, from where it ships high-grade iron ore.
Here’s a video of the action, directed by Michael Bay (probably). It’s too late to tell you it’s got some NSFW language, but sometimes, there’s just nothing else to say:
— Nick Fabrio (@longhorncapital) January 15, 2021
A shipowner told S&P Global Platts that the fire had been at PDM’s 4S shiploader – in the main VLOC (Very Large Ore Carrier) berth.
That’s means some very large ships carrying a lot of high grade iron ore won’t be leaving port on schedule.
A shipbroker source also noted that another berth at Ponta da Madeira had already been closed because of a collision recently.
Seaborne iron ore prices rebounded in response, Platts says.
“Some sources expected the high-mid grade spread to widen further, on expectations of tightening supply from Vale due to potential supply disruptions caused by the fire at Ponta da Madeira and further logistical difficulties during Brazil’s current rainy season,” it says.
“Platts assessed the 62% Fe Iron Ore Index at $US171.45/t CFR North China on Jan. 14, up $2.45/dmt from Jan. 13.”