Brazil government mulls ‘tougher measures and sanctions’ on Vale, minister says
Brazil's government has regularly criticized the miner for two dam collapses in Minas Gerais state, and for not investing enough in the country.
Iron ore futures prices lost further ground on Thursday, weighed by strong global supply and top consumer China’s persistently weak steel market, although hints of heavier monetary stimulus helped limit losses.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) fell for a fifth straight session to close daytime trade with a loss of 1.55% to 764.5 yuan ($105.50) a metric ton.
The benchmark August iron ore on the Singapore Exchange dipped below the key psychological level of $100 a ton, falling 1.14% to $99.75 a ton, as of 0710 GMT.
Regional steel trading associations in China are seeking new quality standards for steel rebar, used in construction, to be delayed after a wave of panic inventory sell-downs pressured the ferrous market.
Steel benchmarks on the Shanghai Futures Exchange were weaker. Rebar and stainless steel fell more than 2%, hot-rolled coil shed over 1.7%, and wire rod tumbled almost 4.5%.
Hopes of optimistic financial markets trading China’s industrial metals complex have been met with “crushing disappointment” after China’s third plenum failed to deliver on stimulus expectations, said Atilla Widnell, managing director at Navigate Commodities.
More worryingly, a slew of dismal Chinese data last week shows an accelerating pace of contraction in floor space under construction, completions and property prices, meaning government policies to clear excess housing inventories are seeing muted impact, Widnell added.
Australia’s Fortescue forecast higher iron ore shipments for fiscal 2025 and posted a 24% sequential rise to record shipments in the fourth quarter.
However, iron ore prices clawed back some losses after China’s central bank surprised markets by conducting an unscheduled lending operation at steeply lower rates, suggesting authorities are trying to provide heavier monetary stimulus.
Other steelmaking ingredients on the DCE – coking coal and coke lost 1.24% and 1.95%, respectively.
($1 = 7.2462 Chinese yuan)
(By Gabrielle Ng and Amy Lv; Editing by Savio D’Souza and Mrigank Dhaniwala)
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