Vale Posts Strongest Second-Quarter Iron Ore Output Since 2018

[Brazil] Major-customer bankruptcy triggers spot liquidation; Brazilian HDG prices under pressure This week domestic hot-dip galvanized (HDG) steel prices in Brazil came under downward pressure. The decline was primarily driven by a key client of a major local mill filing for bankruptcy liquidation, creating receivables risks that prompted the steelmaker to liquidate inventory at discounted spot prices to accelerate cash recovery. However, backed by robust automotive demand, quotes from other mainstream mills held firm. Hot-rolled coil ex-works prices stabilized at 750-760USD/tonne EXW, as high interest rates and tight credit conditions continued to suppress downstream purchasing sentiment. In the slab market, mills prioritized internal consumption for September shipments, keeping export offers steady at 580-585 USD/tonne FOB.

The ongoing geopolitical conflict in the Middle East escalated as Houthi forces enforced a maritime blockade targeting Saudi Arabia, fundamentally disrupting bulk commodity shipments through the Red Sea. Although specific regional ferrous volume reductions are yet to be fully quantified, industry experts indicate the crisis has caused a sharp increase in energy prices and severe logistics constraints, inflating freight costs for seaborne iron ore and steel trade.