Iron ore miners cut production, see price drop

Global miners like Rio Tinto, Vale and BHP are resorting to production curtailment across their sites yet they see iron ore prices getting adversely impacted as steel makers have also initiated shutdowns.

Vale

World’s largest iron ore miner Vale of Brazil sees closure of steel plants outside China would impact global iron ore prices which, in recent times, have held up due to lower production from Australia, Brazil and in China, Vale’s chief finance officer recently told analysts.

Prices averaged about $90 a ton but have recently fallen to six-month low of $82 a ton, according to S&P Global Platts.

To help tide over the crisis, Vale has said it will provide temporary aid package for suppliers, small and medium-sized businesses approximately R$160 million that will be injected in the coming days into the Brazilian economy.

“At a time when the country is experiencing great uncertainty, we will use our distribution network, our presence at the base of the production chain and our capacity of mobilization to help our suppliers face the impacts of this pandemic, always focusing on the health and safety of people”, says Alexandre Pereira, Executive Officer of Global Business Support.