Iron ore prices pushed above 100 dollars a tonne in early June on fears that coronavirus outbreaks in Brazil would disrupt supply, just as Chinese demand stayed strong. Spot prices for 62% iron ore delivered to China reached 105.75 dollars a tonne on 8 June, a ten-month high, and had held above 100 dollars on seven of the previous nine trading days. The trigger was an order for Vale to suspend its Itabira complex after 188 workers tested positive for the virus. Itabira produced about 36 million tonnes in 2019, roughly 12% of Vale's total iron ore output. Vale had already cut its 2020 production guidance in April to 310-330 million tonnes, from 340-355 million tonnes, citing the pandemic. Analysts warned the rally could fade if Brazilian supply recovered.
Source: Nasdaq — https://www.nasdaq.com/articles/iron-ore-prices-surge-as-vale-ordered-to-shut-itabira-mines-2020-06-08
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