UPDATE 4-Vale files force majeure on some iron ore to China

Fri Dec 14, 2007 7:10pm GMT
 
Email | Print | | Single Page
[-] Text [+]

(Adds Vale statement, analysts in Brazil)

By Nao Nakanishi and Andrei Khalip

HONG KONG/RIO DE JANEIRO, Dec 14 (Reuters) - Brazil's Vale (VALE5.SA)RIO.N, the world's largest iron ore producer, has declared force majeure on some iron ore cargoes destined for China, helping lift the spot price of the raw material to a new record.

But Vale said it expected to resume shipments from its Sepetiba terminal on Saturday, at least on a provisional basis, while works to repair a berthing dolphin, damaged by a mooring ship on Dec. 8, are under way for up to 40 days.

The surge in spot prices makes it more difficult for steel mills to limit price increases in ongoing negotiations for next year with the world top miners, which include BHP Billiton (BLT.L)(BHP.AX) and Rio Tinto (RIO.L)(RIO.AX).

Vale said in a statement the Sepetiba/Itaguai port operator would run tests on Saturday "and if everything goes well, operations at the port terminal will resume on a provisional basis as early as tomorrow, Dec. 15."

It said three vessels had not been loaded due to the force majeure, but traders in China and port officials in Sepetiba said earlier as many as 11 ships had been affected and up to 1.8 million tonnes of ore stuck in the port.

A port official said the ore shipment pier in Rio de Janeiro state had not been loading since the accident.

Sepetiba is the smallest of Vale's four iron ore terminals and it said it was trying to send the raw material waiting to be loaded to the other ports.  Continued...

 

Market Update

  • UKUK
  • USUS
  • Europe
  • Asia
  • UK Most Actives
Currency
US $ inGBP =0.6171
Euro inGBP =0.8613
¥en inGBP =0.0067

Most Popular on Reuters UK

  • Articles
  • Videos