Brazilian pig iron producer CBF Industria de Gusa, which is part of the Ferroeste Group, has shut down a blast furnace at its João Neiva plant in Espírito Santo state, following the Brumadinho disaster.
Vale supplies about 45,000 mt of iron ore per month to CBF, according to a media report by Valor. A CBF source told Valor all Vale’s guarantees for delivering iron ore would last only for this month.
“That led us to shut down one of our blast furnaces,” the CBF source said, adding that they will stop producing about 40 percent of its capacity of 22,000 mt of pig iron per month.
Vale said it is reviewing its alternatives for suppling iron ore domestically.