* Brazil court orders Vale to halt Dique III mine ops
* Vale allowed to resume operations at Brucutu mine
* Dalian iron ore set for first weekly loss in 4 weeks
By Enrico Dela Cruz
MANILA, March 22 (Reuters) - Chinese iron ore futures were little changed in early trade on Friday amid conflicting signals about supply from the world's top producer Vale SA VALE3.SA , but were set to post their first weekly loss in four weeks.
A Brazilian court in Minas Gerais state ordered Vale to halt operations at the iron ore complex of Dique III, according to a court document seen by Reuters on Thursday. But its impact on production remains unclear. has been targeted by several court verdicts related to mines that use dams similar to the one that burst in January, killing over 300 people.
Operations at Vale's Alegria mine in Minas Gerais state have also been halted after a "stress test" failed to guarantee stability, with the impact to iron ore production seen at 10 million tonnes per year. the miner has been allowed to resume operations at its Brucutu mine, its largest iron ore complex in the state of Minas Gerais. May 2019 iron ore contract, the most active on the Dalian Commodity Exchange DCIOcv1 , rose as much as 0.7 percent in early trade before easing to be at 612.5 yuan ($91.48) a tonne by 0213 GMT.
The contract was set to dip more than 1 percent for the week, after rising for the past three weeks on Vale-driven supply concerns.
"Reports of further disruptions in the iron ore market should see prices well supported," ANZ said in a note, adding that a cyclone in Australia added to concerns about supply.
Pilbara Ports, operator of Australia's key iron ore exporting ports, said on Thursday it was preparing to clear the ports due to a severe tropical cyclone heading towards the coast. broker Marex Spectron said tight spot iron ore supplies in China, amid a slowdown in shipments into the country, should support prices in the short term, even as "demand conditions are marginally bearish".
"This should go on to support prices that were dragged down by poor re-stocking efforts by end-users as various sintering cuts in China continue to plague part of northern China," said Hui Heng Tan, research analyst at Marex Spectron.
Steel prices were lower, with the most-active rebar contract on the Shanghai Futures Exchange SRBcv1 down as much as 1.4 percent at 3,742 yuan a tonne. Hot rolled coil SHHCv1 fell 1.1 percent to 3,670 yuan.
China's eastern Jiangsu province will launch inspections on chemical producers and warehouses, which could include iron and steel enterprises, after a deadly blast in the city of Yancheng, according to an emergency notice published by official media on Friday. = 6.6952 Chinese yuan)