by Chris Becker
Iron ore lifted around 0.5% across the complex compared to the big gains in stocks in China yesterday, the exuberance capped somewhat by the rising port inventories and confirmation that Vale is ready to bring back its lost production in the next quarter.
Here’s the price matrix and daily charts:
More on Vale from ANZ via Reuters:
All eyes remain on Brazilian miner Vale SA and the impact of the country’s rising tally of COVID-19 cases on iron ore production already hampered by a tailings dam disaster last year.
“Vale confirmed it will bring back most of its lost production in the coming months. This gave a signal of easing supply tightness, with rising seaborne trades (expected) in the weeks ahead,” ANZ analysts said in a note.
China’s iron ore port stockpiles, which last month hit the lowest since October 2016, have since steadily climbed to reach 109.75 million tonnes on July 3, based on SteelHome consultancy data.
Iron ore prices are projected to average $79 a tonne, free on board Australia, this year and $65 next year as supply is likely to increase, according to the Australian government’s latest forecast.