Iron ore price continues to hold above $ 100 due to the epidemic of supply cuts in Brazil, the world’s second largest exporter.
Iron ore prices continue to hold above $ 100 due to concerns about supply cuts in Brazil, the second largest exporter. Following the commodity prices, Argus stated that iron ore, which saw the peak of 10 months with $ 105.75 / ton on June 8, has been above $ 100 in seven of the last nine trading days as of yesterday. The iron ore contract, which is the most traded on the Dalian Commodity Exchange, rose only 23.3 percent in May. Rising from the bottom in March is 30 percent. On the other hand, Reuters commodity analyst Clyde Russel says that prices are rising with unrealized anxiety and may fall again. According to Refinitiv data, in June, Brazil will export 23.4 million tons of iron ore. Noting that China’s demand has also increased strongly, Russel emphasizes that the export expectation of June is a slight decrease compared to 24.87 million tons in May and indicates an increase compared to 23.24 million tons in April.
Even though prices fell to $ 103.85 / ton on Wednesday, the concern that there may be an interruption in iron ore production by the largest producer Vale SA is reflected in Brazil, where the number of dead is nearly 40 thousand. Brazilian prosecutors are expanding the investigation, which was launched as a result of hundreds of workers’ deaths in accidents in mine waste dams, to include claims that Vale could not adequately protect its employees from the risks of COVID-19. While iron ore production in Vale’s Carajas region is one of the COVID-19 outbreak centers, the region realizes 7 percent of global production.
In Australia, the world’s largest iron ore exporter, Rio Tinto lost support from Aborigines after it detonated two sanctuaries as part of its expansion plans. The local government approved another mining company BHP to detonate 40 sanctuaries after this incident. A gap in the Aboriginal Heritage Act opens the way for mining companies to damage or completely destroy certain cultural sites.
Relaxation decisions canceled in Rio
In the largest city of Brazil, Rio de Janerio, state courts have canceled the local government’s relaxation orders. At the request of the Chief Prosecutor, the cancellation of the relaxation decisions taken at the beginning of June was evaluated and announced that the decisions of “outdoor sports activities, cultural activities, opening of bars, restaurants, shops and places of worship” were suspended. Many infectious disease specialists argue that the country should not be reopened yet. As of yesterday, 775 thousand 184 cases were recorded in the country, while 39 thousand 797 people died. While 8 thousand 318 people are in serious condition, more than 330 thousand people are suffering from moderate severity. Nearly 397 thousand people were healed or discharged. In parallel with the developments, another court decided to stop the pork facility of the meat packaging producer JBS in the south of Rio Grande do Sul for 14 days. According to court documents, 21 of the 1,700 facility employees were infected and hospitalized. The prosecutor’s office said that 3 thousand 201 employees have detected viruses in all meat plants across the state.