Vale SA announces force majeure for iron ore supplies from Brazil

The largest Brazilian supplier of iron ore raw materials, Vale, declared force majeure for a number of contracts as a result of weather conditions of the country's southeast. The pouring rains that were ongoing from the beginning of December caused numerous landslides and floods, especially in the state of Espirita-Santa, through which the main railway tracks go to the port of Tubaro.

Natural cataclysms led to the fact that from 2 to 3 million tons of iron ore will not fall on the time for loading into the port. Of these, less than 2 million tons can be enthusiasts in the first quarter of 2014.
Vale announced that she was taking all the necessary measures to resume the shipments of iron ore raw materials by rail and seeking to minimize the consequences of heavy rains.

Meanwhile, problems with the supply of ore, which will last a few more days, or maybe weeks, are able to inflate prices in world markets. On Friday, iron ore with 62 percent of iron in a dry balance was traded at $ 135 per ton. Analysts that predicted a sharp drop in prices and $ 80 and below report a revision of the long -term consensus of the forecast for ore for 2014 at the level of $ 100 and higher.