Iron ore prices for May 16, 2019:
Spot to the moon. Paper too. Not steel.
Steel mill margins are going to get crushed and, over time, they’ll try to destock. But that is besides the point for now. With China cornered by the trade war and needing MOAR stimulus and Brucutu offline the only way is up.
News flow is not too good for an early return, either, via Reuters:
Brazilian iron ore miner Vale told prosecutors in the state of Minas Gerais that a dam is at risk of rupturing at its Gongo Soco mine, about 65 kilometres from where its Brumadiho dam collapsed, leaving more than 230 people dead.
According to a document published on Thursday, prosecutors said Vale is predicting the dam in the city of Barao de Cocais may collapse next week if the current rate of movement in the embankment of the mine pit close to the dam is maintained.
Earlier this week, Vale had identified movement close to the mine, which has not been active since 2016. Local residents were evacuated in February. The dam holds 6 million cubic metres of mining waste, according to mining regulator ANM.