Vale Drops to 3-Year Low as Iron-Ore Prices Slump: Rio Mover

Vale SA (VALE3), the world’s largest iron- ore producer, declined to the lowest in almost three years as prices for the steelmaking material slumped on slower Chinese economic growth.

Vale, based in Rio de Janeiro, dropped 3.2 percent to close at 34.19 reais in Sao Paulo, the lowest since Sept. 11, 2009. The stock lost 9.6 percent this year, compared with a 3.1 percent gain in the Brazilian benchmark Bovespa Index.

Iron ore for immediate delivery fell 4.9 percent to $99.60 a ton today, its seventh consecutive decline to the lowest since December 2009, according to data compiled by The Steel Index Ltd. Shares of Vale are falling because of lower iron-ore prices and signs of slowing economic conditions in China, the biggest user of the steelmaking raw material, said Leonardo Brito, an equity analyst at hedge fund Teorica Investimentos.

“Prices are below $100 already, which is worrying,” he said in a telephone interview from Rio. “If that continues for some time, the profit forecasts for Vale will be lowered.”

To contact the reporter on this story: Juan Pablo Spinetto in Rio de Janeiro at

To contact the editor responsible for this story: James Attwood at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.