MANILA, May 27 (Reuters) – China’s iron ore futures hit a new high since 2013 on Monday, extending last week’s record-breaking rally, as stocks of the steelmaking ingredient at ports continued to drop while worries lingered about another Brazil mine dam at risk of collapsing.
Iron ore inventory at Chinese ports SH-TOT-IRONINV has shrank further to the lowest in more than two years, latest data compiled by SteelHome consultancy showed.
Concerns about supply have also intensified after Vale recently told prosecutors in Brazil’s state of Minas Gerais that a dam is at risk of rupturing at its Gongo Soco mine.
That mine is about 40 miles from where Vale’s Brumadinho dam collapsed in late January, killing more than 230 people.
The Brumadinho dam disaster and subsequent mine closures in Brazil had prompted Vale, the world’s biggest iron ore miner, to slash its iron ore sales estimate for this year, pushing prices to record highs.
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