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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