VALE AND CSN MINING FALL WITH IRON ORE PULLBACK, WHILE STEELMAKERS SHOW MIXED PERFORMANCE

SHARES OF MINING AND STEEL COMPANIES ENDED THURSDAY’S SESSION WITH A MIXED PERFORMANCE, REFLECTING A PULLBACK IN IRON ORE PRICES AFTER SEVERAL CONSECUTIVE GAINS IN THE INTERNATIONAL MARKET. THE SECTOR, WHICH STARTED 2026 ON A STRONG NOTE, SAW A DAY OF ADJUSTMENTS AS INVESTORS LOCKED IN PROFITS AND ADOPTED A MORE CAUTIOUS STANCE.

VALE AND CSN MINING RECORDED MORE NOTICEABLE LOSSES, TRACKING THE DECLINE IN IRON ORE FUTURES ABROAD. BRADESPAR ALSO CLOSED LOWER, REINFORCING THE NEGATIVE TREND AMONG COMPANIES WITH GREATER EXPOSURE TO THE COMMODITY CYCLE. ON THE OTHER HAND, STEELMAKERS SHOWED A MORE DEFENSIVE BEHAVIOR, WITH USIMINAS POSTING GAINS AND CSN TRADING CLOSE TO STABILITY, WHILE GERDAU FINISHED THE DAY WITH A SLIGHT DECLINE.

THE BROADER MOVE IN THE SECTOR WAS DRIVEN BY THE PERFORMANCE OF IRON ORE CONTRACTS IN CHINA AND SINGAPORE. AFTER FOUR STRAIGHT SESSIONS OF GAINS, PRICES RETREATED AS THE MARKET FACTORED IN PROFIT-TAKING AND GREATER CONCERNS ABOUT A POSSIBLE INTERVENTION BY THE CHINESE GOVERNMENT TO CURB PRICE INCREASES, AS QUOTATIONS NEARED LEVELS CONSIDERED STRATEGIC.

ON THE DALIAN COMMODITY EXCHANGE, THE MOST ACTIVELY TRADED IRON ORE CONTRACT POSTED A MODEST DECLINE, DESPITE HAVING REACHED ITS HIGHEST LEVEL SINCE MID-2025 EARLIER IN THE SESSION. IN SINGAPORE, THE BENCHMARK IRON ORE PRICE ALSO MOVED LOWER AFTER TOUCHING LEVELS NOT SEEN SINCE 2024.

RECENT GAINS IN IRON ORE HAD BEEN SUPPORTED BY EXPECTATIONS OF STRONGER DEMAND IN CHINA, THE WORLD’S LARGEST CONSUMER, PARTICULARLY AFTER SIGNALS OF MONETARY EASING FROM THE COUNTRY’S CENTRAL BANK. HOWEVER, THE SHARP RISE IN PRICES HAS MADE INVESTORS MORE CAUTIOUS, REVIVING MEMORIES OF PREVIOUS MARKET INTERVENTIONS BY BEIJING TO CONTAIN EXCESSIVE VOLATILITY.

ADDITIONALLY, THERE ARE SIGNS THAT SOME CHINESE STEEL MILLS HAVE SCALED BACK PURCHASES, BECOMING MORE RELUCTANT TO BUY CARGOES AT ELEVATED PRICE LEVELS. MARKET DATA INDICATE A SIGNIFICANT DROP IN TRADING VOLUMES AT MAJOR CHINESE PORTS, SUGGESTING A PERIOD OF CONSOLIDATION AFTER THE RECENT RALLY.

IN THE NEAR TERM, THE SECTOR IS EXPECTED TO REMAIN HIGHLY SENSITIVE TO IRON ORE PRICE FLUCTUATIONS AND TO SIGNALS FROM CHINA, PARTICULARLY REGARDING PRICE CONTROL POLICIES AND THE OUTLOOK FOR INDUSTRIAL DEMAND.