Iron ore price reverses to losses as weakening China steel consumption drags
Apparent consumption of five major steel products slipped by 2.1% week-on-week.
State-controlled China Communications Construction Co (CCCC) and iron ore miner Vale SA have agreed to set up a steel mill in Brazil’s northern state of Pará with a $450 million investment, the state’s government said on Thursday.
Vale confirmed in a separate statement that it had signed a protocol of intentions to support the financial structure of the flat-rolled steel laminating venture by issuing guaranties backing the project’s funding.
The plant could emerge as a key destination for iron ore produced at Vale’s giant Carajas mine in the same state.
The venture has “the capacity to leverage the economy of dozens of mining municipalities, producers of high-quality raw material, with large stocks to ensure cutting-edge products” for the construction, agricultural equipment, automotive and machinery and equipment companies, the state said.
The announcement comes at a time when Vale has been grappling with the aftermath of a deadly mine collapse which led the company to post a record first-quarter net loss of $1.64 billion.
(By Roberto Samora and Christian Plumb; Editing by Jonathan Oatis)
