Vale Fire More Fuel For Iron Ore Miners

By Glenn Dyer | More Articles by Glenn Dyer

Another problem for global iron ore markets and Vale, the embattled Brazilian giant with a fire at the big Malaysian blending and transfer operation on Friday set to close the facility for 10 to 15 days, meaning Chinese mills will be without Brazilian ore for two weeks.

The fire came too late to impact trading on Friday in markets.

The metal Bulletin 62% Fe Iron Ore Index ended at $US88.16 a tonne, down 16 US cents on the day, but still up just over 2% over the week (from $US86.53)

The Metal Bulletin 62% Fe Pilbara Blend Fines Index ended at $US87.55 a tonne, also down 16 cents a tonne. The 58% Fe Premium Index ended at $US81.18 per tonne down 15 cents while the 65% Fe Iron Ore Index: (typically supplied by Vale) rose 60 cents a tonne to $US100.50 a tonne.

Vale said the fire caused material damage and took place in one of the transfer houses of the conveyor belt system of the center in Malaysia.

“Vale expects a reduced impact on its shipments, since a 10 – day preventive maintenance was already scheduled at the terminal during the same period,” the miner said in a statement.

Glenn Dyer

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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