Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Vale expressed concern that iron ore prices could come under pressure with mills across the globe either curtailing or halting production, according to media reports. Brazil-based Vale is the worlds largest miner of iron ore. Around 15mn mt of steelmaking capacity has been hampered globally due to COVID-19 lockdown measures, estimates Vale. 


European steel mills Thyssenkrupp, Tata Steel, ArcelorMittal and Viohalco have announced production cuts to match a slump in demand and labour challenges due to the COVID-19 pandemic. Steelmakers have cited delays in deliveries and lack of orders from the automotive and construction sectors as major reason for production cuts. Other steelmakers like the Beltrame Group in France; Tenaris-Dalmine in Italy; Salzgitter in Germany; and Voestalpine in Austria, have either cut production or suspended operations amid diminishing demand and a struggle to transport raw materials. In the UK, primary steelmakers, including the Jingye Group-acquired British Steel and other blast furnaces, have been forced to stop operations. 


in March, prices of iron ore in Brazil and China markets have been rangebound between $101-104/mt. These were largely supported by lower supply from Australia, Brazil and China. Though supply chains remain disrupted prices are pressured by a lack of demand due to the expected economic impact of the pandemic. China, where the virus outbreak was first reported, has returned to the market with near-normal production levels. But barring China, production in other Asian markets like Japan, South Korea remains hampered. 

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