Posco jumps as Brazil dam collapse lifts hopes for steel price rise

Dongkuk Holdings Co

30/01/2019 05:23

** Shares of South Korea's largest steelmaker Posco
 005490.KS  jump as much as 6.2 pct, their biggest pct gain
since April, 2018
    ** Reports of iron ore price surge due to supply concerns
after the Brazilian dam collapse likely lifted hopes for a rise
in steel prices, says Baek Jae-seung, an analyst at Samsung
Securities
    ** Iron ore prices jumped on Monday after the collapse of
the dam owned by Brazilian miner Vale SA  VALE3.SA  on Friday,
causing analysts and investors to anticipate lower production of
iron ore - report https://www.wsj.com/articles/iron-ore-under-pressure-over-supply-concerns-after-vale-mining-disaster-11548691724
    ** Vale SA, the world's largest iron ore miner, on Tuesday
vowed to take as much as 10 pct of its ore output offline in
order to decommission 10 more dams like the one that burst last
week, killing scores of workers and nearby residents
 urn:newsml:reuters.com:*:nL1N1ZT09O
    ** Shares of Vale SA plunged 24.5 pct on Monday after
Friday's incident
    ** The sub-index for iron, steel and metal  .KS34  jumps 3.6
pct, while other shares such as Dongkuk Steel Mill Co Ltd
 001230.KS  gain 5.9 pct
    ** Broader KOSPI market  .KS11  up 0.7 pct as of 0511 GMT
    ** Posco is expected to report Q4 results later in the day

 ((Reuters Messaging: joori.roh.thomsonreuters.com@reuters.net))