Brazil Pig-Iron Producers Expect Ore Price to Decline
Brazilian producers of pig iron expect the price of the iron ore they buy from Cia. Vale do Rio Doce to decline as much as 30 percent this year, a pig-iron producer and exporter said.
“We don’t think it’s going to be the 10 percent fall Vale is talking about,” Rodrigo Valladares, sales director of Belo Horizonte-based Viena Siderurgica SA, one of the country’s largest producers of the steelmaking raw material, said today in a telephone interview.
Price talks between steelmakers and iron-ore miners may start to progress in the next few days after the Chinese New Year celebrations, Valladares said. China is the world’s biggest iron- ore importer.
“Everybody’s at a standstill waiting for the iron-ore price to be settled,” Valladares said. “Vale is also at a standstill.”
Any drop in iron-ore prices would be reflected in lower pig- iron prices, he said. Brazil’s pig-iron producers have the capacity to produce about 10 million tons a year, according to the Brazilian Pig Iron Producers’ Association, based in Brasilia.
A Rio de Janeiro-based spokeswoman for Vale declined to comment.
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