BOM - Supply Worries Drive Iron Ore Prices To New Heights
By Stuart Burns
Two major dam disasters in three years are enough to put the frighteners on investors and get the media abuzz with talk of supply-side shortages.
Yet, as small as Vale's (VALE) production loss is, the fact remains the market is relatively tight, and supply is becoming an issue again after many years of plenty.
According to Reuters, the Corrego do Feijao mine shutdown will result in only a 1.5% production loss to Vale, hardly enough in itself to create a surge in the iron ore price to a four-and-a-half-year high