Vale chief sees iron ore prices recovering by year
Post# of 8054
Posted On: 09/09/2014 1:48:33 PM
Vale chief sees iron ore prices recovering by year-end
TOKYO -- Prices for iron ore have continued to fall due to a glut but will likely rebound this year, the head of Brazilian mining giant Vale told The Nikkei on Tuesday.
Prices will probably recover to between $95 and $100 per ton by year-end, President and Chief Executive Officer Murilo Ferreira said in an interview in Tokyo.
"I think the problem is not in the demand," said Ferreira. "It is based on oversupply in the market."
Spot prices for iron ore are currently at around $84 per ton, a roughly five-year low. But prices are seen rising as many small mines in China and elsewhere close due to deteriorating profits, alleviating oversupply issues. Furthermore, iron ore prices have fallen more sharply than other key commodities, including crude oil.
Global resource giants, including Vale and Rio Tinto, have not slowed efforts to boost iron ore output. On the contrary, they expect strong demand driven by urbanization in emerging nations and other factors.
Vale will ramp up production in Brazil, increasing its annual iron ore output from about 300 million tons in 2013 to 450 million tons in 2018, according to Ferreira.
TOKYO -- Prices for iron ore have continued to fall due to a glut but will likely rebound this year, the head of Brazilian mining giant Vale told The Nikkei on Tuesday.
Prices will probably recover to between $95 and $100 per ton by year-end, President and Chief Executive Officer Murilo Ferreira said in an interview in Tokyo.
"I think the problem is not in the demand," said Ferreira. "It is based on oversupply in the market."
Spot prices for iron ore are currently at around $84 per ton, a roughly five-year low. But prices are seen rising as many small mines in China and elsewhere close due to deteriorating profits, alleviating oversupply issues. Furthermore, iron ore prices have fallen more sharply than other key commodities, including crude oil.
Global resource giants, including Vale and Rio Tinto, have not slowed efforts to boost iron ore output. On the contrary, they expect strong demand driven by urbanization in emerging nations and other factors.
Vale will ramp up production in Brazil, increasing its annual iron ore output from about 300 million tons in 2013 to 450 million tons in 2018, according to Ferreira.
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