Dry bulk stocks and freight rates have had another rough day, following news Vale expects to cut 40m tons of iron ore production over the next one to three years.
Vale decided on Tuesday to decommission 50 tailing dams at its mines in Brazil, following the collapse of one at its facility in Feijao on Friday.
The move will squeeze cargo availability on ex-Brazil shipping routes, but “there is no damage to iron ore demand, only supply”, as analyst Frode Morkedal from Clarksons Platou Securities said today.
