Vale sees iron ore market resilient despite lower prices in China
The situation in China is "more balanced than domestic indicators suggest," Vale's executive vice president told analysts.
Steelmaking plant in China. (Adobe Stock)
Brazilian miner Vale, one of the world’s largest iron ore producers, said on Friday that market fundamentals for the commodity remain resilient despite prices in China hitting a one-year low this week.
The situation in China is “more balanced than domestic indicators suggest,” Vale’s executive vice president for commercial and development, Rogerio Nogueira, told a call with analysts.
Demand is also improving outside China, he added.
Iron ore futures on the Dalian exchange fell for a sixth straight session Friday, dropping 1.31% to 716 yuan ($106.14) per metric ton.
Vale, which has low-cost production and makes high-grade iron ore, said that if prices fall further, a significant portion of less competitive global miners would exit the market.
(By Marta Nogueira and Isabel Teles; Editing by Gabriel Araujo)
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