Japan steel industry eyes Brazil reaction to Vale dam disaster

TOKYO: Japan's steel industry is closely watching the Brazilian government's reaction to the collapse of a dam operated by miner Vale SA for any impact on iron ore production and shipments, the head of a steel industry group said on Thursday.

"We don't know if the recent rally in the iron ore market will be short-lived or will lead to a structural change of the market for the long term," Japan Iron and Steel Federation Chairman Koji Kakigi told a news conference.

Kakigi, who is also president of JFE Steel, a unit of JFE Holdings, said his company buys about 20 percent of its iron ore from Vale, and supplies have not been affected so far.