"We expect iron ore prices to find a floor around current levels," says ANZ Research.

The firm expects capital expenditure on mine expansion projects to reach 560 million reais ($101 million) this year.

The conclusions come as Brazilian authorities and Samarco co-owners enter the final phases of a re-negotiation of a 2016 settlement.

Metals are still at “sky-high levels” even relative to China’s recent weak factory data, analysts from Capital Economics wrote in a note.

The demand remains cool on steel production controls and sluggish downstream consumption.

The worst performers among 53 major metal companies ranked for risks and readiness in a net-zero emissions scenario were an Australian iron ore miner and steelmakers from Russia and India.

Steel, cement and coking plants in the steel hub of Tangshan city were recently ordered to cut production following a heavy-pollution alert.