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