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Brazil's Vale cancels 30 Chinese iron ore shipments

Brazil's Vale cancels 30 Chinese iron ore shipments

Shanghai: Brazilian iron ore producer Vale (previously known as CVRD) has cancelled 30 iron ore shipments to Chinese mills in the first three months of this year due to repair work at ports and congestion, reports the Economic times. The mills have also been informed of delays to a further 20 cargoes from the same source, indicating that Chinese steel producers will have to make alternative arrangements to ensure a constant supply of the raw material.

On it's website, Vale has said that export stoppages from its Itaguaí maritime terminal (due to repairs) "represents an average daily loss shipment of 60,000 metric tons of iron ore." The terminal, which boasts an annual shipload capacity of 25m metric tons of iron ore, is expected to return its regular operations by the beginning of February.

Vale also operates the Ponta da Madeira maritime terminal, Guaíba Island maritime terminal and the Tubarão Port.

The delays coincide with the negotiations for 2008 iron ore prices currently underway between steel mills and miners. Prices are expected to see a substantial rise fuelled by inflation and growing global demand.  [17/01/08]