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UPDATE 1-China iron ore edges up amid mixed signals on Vale supply

Published 22/03/2019, 07:25 pm
Updated 22/03/2019, 07:30 pm
© Reuters.  UPDATE 1-China iron ore edges up amid mixed signals on Vale supply

* Brazil court orders Vale to halt Dique III mine ops

* Vale allowed to resume operations at Brucutu mine

* Dalian iron ore posts first weekly loss in 4 weeks (Updates with closing prices, graphic)

By Enrico Dela Cruz

MANILA, March 22 (Reuters) - Chinese iron ore futures edged higher in choppy trade on Friday amid conflicting signals about supply from the world's top producer Vale SA VALE3.SA , but posted 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 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 Minas Gerais. May 2019 iron ore contract, the most active on the Dalian Commodity Exchange DCIOcv1 , rose as much as 0.7 percent before ending the session 0.5 percent higher at 615.5 yuan ($91.86) a tonne.

The contract dipped 1.6 percent for the week, after rising for the past three weeks, buoyed by increased demand at steel mills.

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"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...continue to plague part of northern China," said Hui Heng Tan, research analyst at Marex Spectron.

The most-active rebar contract on the Shanghai Futures Exchange SRBcv1 edged down 0.8 percent to 3,768 yuan a tonne, but hot rolled coil SHHCv1 was slightly up at 3,712 yuan, from the previous session's 3,710 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. coal DJMcv1 ended 1.4 percent higher at 1,248.5 yuan a tonne, while coke DCJcv1 rose 1.2 percent to 1,999 yuan.

($1 = 6.7006 Chinese yuan)

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https://tmsnrt.rs/2Cw8tVV

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