Fastmarkets (below) has picked up the story.

But I think they may not have the entire picture.

Ponta da Madeira was expanded in 2018 to handle 230 mt of IO per year from Vale's Northern Systems operation.

Bolsonaro tagged mining as an essential service, to remain open during the Caronavirus pandemic.

However, Flavio Dino, the communist party Governor of Marinhao state, has retagged industry as "non- essential".

"Among the activities, now considered essential, that will be paralyzed, the governor mentioned trade services, industries and civil construction works."

Is a port facility an industry? I think so.

Over 10 days, this lockdown could take 6mt out of the seaborne iron ore market.

It takes 45 days for a Valemax trip to China (see image below)- so there will be a lag in the impact on supplies to China of high grade IO from the Carajas mines.

This new restriction could be the reason that President Bolsonaro rushed to meet with the Supreme Federal Court President Dias Toffoli on Friday, to brand the lockdown in St Louis and other cities and states "illegal". His other reason might also have been that the judiciary is being urged to launch a probe into Bolsonaros "political interference" in the recent firing of Brazil's federal police chief.

The lockdown in Sao Luis could also hamper any plans Vale has to recover the 275mt of Carajas IO still stuck aboard the Stellar Banner, grounded 100ks off the Ponta da Madeira terminus since late February.


Balsonaro after visiting the supreme court judge, last Friday.

Fastmarkets

FOCUS: Brazilian iron ore supply concerns re-emerge after Covid-19 grips country

Concerns about Brazilian iron ore supply resurfaced among market participants this past week due to expectations that exports of the product would be impeded by Covid-19-related lockdowns in the South American country and the rising number of infections.

Sao Luis was the first major Brazilian city to enter lockdown this week. It is located in the country's northeastern state of Maranhao, to the east of iron ore-producing Para state. Ten cities in Para state, including its capital Belem, have also entered lockdown.
Mining and port operations, however, were not heard to be impacted by the lockdown. Both the federal and state governments have decreed mining, processing, commercialization and shipping essential operations. Despite that, the proximity of the lockdown to iron ore mines has some participants concerned about supply.
Para state is home to the Carajas iron ore mine that forms part of Vale’s Northern System operations. Ore produced at Carajas, including the flagship high-grade brand Iron Ore Carajas (IOCJ), is shipped to global markets through the Ponta da Madeira terminal, located in Maranhao.

https://do not advertise external sites/Article/3931907/FOCUS-Brazilian-iron-ore-supply-concerns-re-emerge-after-Covid-19-grips-country.html


Vale runs Valemax ships out of Ponta da Madeira

The trip takes 45 days.

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275mt of IO contained in the Valemax ship, the Stellar Bannar, grounded off Ponta Da Madeira on the 25th February

The VALEMAX ships travel the route as seen below.

The ship is huge and carries iron ore. Due to its size it can´t follow the route over Panama Channel. It is too big to pass.