Commodities had their best quarter in almost three years, but demand outlook is running into troubling signs in the U.S. and China, the two biggest consumers.
The decision comes on the same day a Brazilian court froze an additional 1 billion reais ($255 million) in assets as possible compensation for damages related to a recent evacuation of the area around the company's Vargem Grande dam in Minas Gerais state.
Vale SA estimates selling up to 75 million tonnes less iron ore this year, after several mines were halted following its second deadly dam burst in less than four years.