Iron ore prices soar as Chinese investors fear Vale output cut

Iron prices hit record highs in China yesterday as investors got jittery over Brazilian supply after a burst dam killed hundreds.

Iron ore futures for May delivery rose to 652 yuan (£75) a tonne on the Dalian Commodity Exchange.

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It comes as the Brazilian government told Vale it must stop using eight dams to store waste.

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Over 300 people are thought to have died when such a dam, operated by the world’s largest iron ore producer, burst late last month.

The closures are expected to hit production by nine per cent, with 70m tonnes being affected.