Iron ore futures held at around $100 on Friday as supply concerns eased.
Latest data showed that Brazil’s iron ore exports increased by 1.4 million tonnes during the first nine days of Jun to 1.64 million tonnes per day.
Meanwhile, Vale is gradually resuming operations at its Itabira complex after receiving the green light from local authorities. The Brazilian miner saw no need to revise its 2020 production guidance which remains at 310-3310 million tonnes for the year.
Platts however cast doubt on Vale’s ability to meet the guidance, citing that Vale would need to increase production by 9 million mt per month in order to meet the guidance.
Some market participants are also concerned about the oversupply in the secondary market, despite strong demand for mainstream cargoes. According to latest data by MySteel, total iron ore port inventory stood at 106.17 million mt, down 805.4K w.o.w for the week ending 19 Jun. (FIS)