Vale CEO: China Demand for Iron Ore Strengthening
Font size: A | A | A
12:38 AM ET 3/18/13 | Dow Jones
By Cynthia Koons
Vale Chief Executive Murilo Ferreira said Chinese demand for iron ore is improving and he expect prices to be between $110 and $145 per dry metric ton this year.
His comments come after a tumultuous year for the steel-making commodity, which plunged to below $90 a ton late last year on the back of a slowdown in demand from China, the world's biggest consumer of iron ore. Iron ore recently traded around $130 a dry metric ton due to renewed demand from Chinese steel makers and supply disruptions in India.
Mr. Ferreira, speaking at a Credit Suisse conference in Hong Kong Monday, said investment decisions will be taken in the context of the market price for commodities.
"The future is growth," he said. "I'm not saying we'll grow regardless of the market."
The world's biggest miners have been cutting back on investments and selling assets, partly prompted by signs of economic weakness in China last year.
High China steel output in February, however, indicates demand for iron ore has started to rebound.