Brazilian miner Vale has said that steel production cuts in Europe amid the coronavirus pandemic will impact the iron ore market, adding that the slowdown in iron ore supply due to lockdowns may ease the impact.
According to Vale’s estimations, European steelmakers have reduced their pig iron production by 17 percent compared to the 2019 level, which corresponds to around 15 million mt as of March 26. The miner also estimates that 18 million mt of global iron ore supply has been affected due to lockdowns in various supplying countries such as South Africa, Canada, India, Malaysia and Peru.
Regarding its own operations, Vale said that so far it is weathering the outbreak with a limited impact on production and sales, confirming that several uncertainties remain ahead.