### Report on Recent Market Developments #### 1. Brazil's Vale Mine Overflows and Its Impact on CSN Facilities In early January 2026, Brazilian mining giant Vale experienced two significant overflows at its Fabrica and Viga mines in Minas Gerais state. The initial overflow occurred on January 25th at the Fabrica mine, followed by another less than 24 hours later at the Viga mine in Congonhas. These incidents resulted in Vale's tailing water reaching streams in Congonhas, as confirmed by local city hall authorities. Additionally, these overflows flooded facilities belonging to Companhia Siderúrgica Nacional (CSN), a major miner and steelmaker, including critical loading areas. The containment of these overflows was reported within 24 hours following the first incident, indicating Vale's rapid response capabilities despite the environmental concern. The potential impact on CSN's operations remains unclear as they have not disclosed any immediate effects on their production schedules. However, such incidents raise concerns about future risks to industrial operations in proximity to mining activities. These overflows are particularly concerning given the historical context of a major disaster in 2019 involving Vale's tailings dam collapse at Brumadinho, which resulted in significant loss of life and environmental damage. Although current events do not relate directly to any dams, they highlight ongoing risks associated with mining waste management in the region. #### 2. US Tariff Threats on Canadian Scrap Metal In a recent geopolitical development, President Donald Trump has threatened to impose a 100% tariff on all imports from Canada if Ottawa concludes a trade deal with Beijing. This announcement introduces potential disruptions to aluminum and ferrous scrap flows between Canada and the United States, impacting industries reliant on these materials. The threat of tariffs comes amid existing tensions in international trade policies, particularly under the US-Mexico-Canada Agreement (USMCA), which had previously exempted certain Canadian imports from tariffs imposed since August 2025. The lack of clarity regarding whether scrap metal compliant with USMCA would remain untaxed adds to the uncertainty faced by stakeholders. Canada plays a crucial role as a supplier of both aluminum and ferrous scrap metals to the United States, significantly influencing trade dynamics in these sectors. As such, any imposition of tariffs could lead to increased costs for American steel and aluminum manufacturers who depend on Canadian feedstock, potentially prompting shifts in sourcing strategies or increased reliance on domestic production. These developments necessitate close monitoring as they may impact global supply chains and trade relationships, particularly between the US and Canada, two key players in the North American industrial landscape. The situation remains fluid until an official executive order is released, clarifying the tariff's scope and implementation timeline. --- This report summarizes recent critical events affecting mining operations in Brazil and international trade dynamics involving scrap metals between the United States and Canada. Stakeholders are advised to monitor these developments closely for potential impacts on their respective industries.