Brazilian miner Vale announced a planned shutdown of its pelletizing operations in Oman amid rising geopolitical risks stemming from conflict in the Middle East, according to a Bloomberg report based on people familiar with the matter.
The shutdowns originally planned for the first half of the year have reportedly been pushed back by several weeks. The decision to carry out early maintenance at two pellet plants in Oman reflects growing concerns about potential operational disruptions and logistics challenges in the region.
Strait of Hormuz disruptions impact supplies
Vale supplies to customers in the Gulf region, including Saudi Arabia, Qatar and United Arab Emirates.
However, supplies were disrupted by Iran's closure of the Strait of Hormuz, which also forced ships carrying Brazilian iron ore to reroute from the Middle East.
Logistics issues impact supplies
The ongoing conflict has increased uncertainty in maritime logistics, affecting delivery schedules and trade flows across the region.
Despite the disruptions, Vale has no plans to revise its full-year production forecasts. The company continues to forecast pellet production in the range of 30-34 million tons by the end of the year
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