A series of iron ore projects may be affected as a result of the low prices the market has seen for the product, according to media reports.
Last week, the product reached $83.60/mt in the Chinese spot market, and from the beginning of the year to now, it has accumulated a 40 percent value loss.
Brazilian companies like Companhia Siderurgica Nacional (CSN), Usiminas and Gerdau, which plan to increase iron ore production, may be affected, reports said.
Usiminas plans to increase its iron ore production from 8 to 12 million mt, according to reports, while Gerdau may raise its capacity from 18 million mt in 2016 to 24 million mt in 2018.
According to estimates from CSN, it may reach a 40-million mt capacity at its Casa de Pedra iron ore mine in the next year. Its current capacity is 24 million mt.