Vale suspension buoys Australian iron ore, price climbs 5pc
Australia’s iron ore sector is poised to benefit – at least in the short term – from a 5 per cent increase in iron ore prices after Vale suspended operations at its Viga concentration plant.
The benchmark 62 per cent iron fines imported into northern China last traded at $US123.47 ($172.27) per tonne on Wednesday, up 5 per cent from Tuesday.
The Brazilian iron ore producer – the second largest in the world – was forced to suspend operations at the plant to comply with a court decision, which it said it would contest, taking production of about 11,000 tonnes of fines per day off the market.
Magnetite Mines (ASX:MGT) non-executive director Mark Eames told Stockhead the surprising thing about the market response to the Vale announcement was how finely balanced the iron ore market was.
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