Iron ore price rally turns into rout
“It’s now a turning point,” Ban Peng, an analyst at Maike Futures told Bloomberg News:
“Recent exports from Brazil have been slightly better than our expectations, and supply from the top miners including Vale SA should increase in the fourth quarter, which is typically a peak season. ”
According to Shanghai SteelHome, iron ore port inventories rose to 119 million tonnes last week, the highest in five months. Stockpiles could increase further in September and October as congestion ate Chinese ports ease.
Vale ramp up
Vale (NYSE: VALE) said on Wednesday it expects to reach iron ore capacity of 400 million tonnes per year by increasing output across its operations.
The company currently has the capacity to produce 318 million tonnes a year. In 2018, before the Brumadinho dam collapse, Vale produced 385 million tonnes.
In an investor site visit presentation, Rio de Janeiro-based Vale also said it has a target of 450 million tonnes per year “in the future.”