Vale SA has “declared force majeure on some iron ore shipments from its mines in Brazil’s southeastern state of Minas Gerais because of heavy rains, the company said on Friday,” reports Reuters.
“The seasonal rains blocked portions of Vale’s Vitória-Minas Railway in Brazil’s Espirito Santo state and disrupted operations at its Port of Tubarão on the outskirts of Vitória, the Espirito Santo capital, the company said in a statement.”
“In this case, Vale expects the declaration will result in the failure to load between 3 million and 4 million tonnes of contracted iron ore shipments by the end of the year for its customers, the statement said. The company added that it may be able to make up for 2 million tonnes of lost 2013 output in the first quarter of 2014.”
In metal price news for steel…
Chinese steel prices closed flat for the day. The price of iron ore 58% fines from India was range bound. The price of Chinese HRC saw essentially no change for the fifth day in a row. The price of Chinese coking coal saw little movement.
The steel billet cash price remained essentially flat at $300.00 per metric ton on the LME. The 3-month price of steel billet held steady on the LME at $285.00 per metric ton.
For the fifth consecutive day, the 3-month price of the US HRC futures contract held flat at $643.00 per short ton. For the fifth day in a row, the spot price of the US HRC futures contract remained essentially flat at $676.00 per short ton.