More conflicting information regarding major iron ore suppliers continues to generate uncertainty in a steel market characterised by elevated prices supported by production and shipping problems since the beginning of the year.

Last week, Vale notified markets that it has been forced to close its Alegria mine, taking off-line another 10 million tonnes/year of capacity. This followed its announcement the previous day that it was able to restart its 30m t/y Brucutu mine and an announcement the previous Friday that it had shut down the 12.8m t/y Timbopeba mine.

The latest closure followed the ambiguous results of a safety test on another of its tailing dams.

The announcements taken all together would suggest a net increase in supply from Vale of roughly 7.2m t/y, as soon as the restart of Brucutu materialises. Until the situation with Vale stabilises, however, the market is essentially guessing at the Brazilian miner’s production levels and prices of iron ore will continue to be impacted by this uncertainty.