Shougang Hierro Peru, a leading iron ore producer in Peru, has announced the collapse of the ship loader at its San Nicolas terminal, causing a halt in iron ore shipments. The company informed the local stock exchange that repairs will take four to five months, during which sales will be significantly reduced or temporarily suspended.

Shougang, primarily supplying the Chinese market, faces substantial operational challenges due to the incident. Analysts attribute the sharp rise in iron ore prices in China partly to this disruption, although the company’s monthly production capacity of 2 million metric tons is relatively small compared to major producers in Australia and Brazil.