Vale cancels 30 Q1 iron ore cargoes for China16 Jan, 2008, 1022...

Vale cancels 30 Q1 iron ore cargoes for China
16 Jan, 2008, 1022 hrs IST, REUTERS





HONG KONG/BEIJING: Brazil's Vale, the world's largest iron ore producer, has cancelled 30 iron ore cargoes to China for shipment during the first quarter this year, traders and shipping sources said.

In addition, Vale has told Chinese steel mills it is delaying shipment of another 20 cargoes, scheduled for February, partly due to repair work at ports and congestion, the traders and officials from shipping companies said on Wednesday.

Vale's moves come at a time when global steel mills and miners are negotiating 2008 iron ore prices, which are expected to rise possibly by more than 50 per cent. China is the world's top producer and consumer of steel and the world's largest importer of iron ore.

The traders and officials said it was also behind a steep decline in freight rates for dry bulk cargoes from a record high in the past several weeks