Vale SA (VALE3), the world’s largest iron- ore producer, climbed to a seven-month high as prices for the steelmaking material rebound.
Iron ore for immediate delivery rose to a five-month high of $132.20 a metric ton yesterday, according to a price index compiled by The Steel Index Ltd. The recovery from a three-year low in September stems from rising Chinese demand, said Laurence Balter, who oversees $100 million including Vale shares at Oracle Investment Research in Fox Island, Washington.
“Vale is in the sweet spot for this rebound,” he said in e-mailed comments. “Iron-ore prices were far too low.”
Vale is up 28 percent from a three-year low on Sept. 4., outperforming the Bovespa’s 7.5 percent increase in the same period.
To contact the reporter on this story: Juan Pablo Spinetto in Rio de Janeiro at firstname.lastname@example.org
To contact the editor responsible for this story: James Attwood at email@example.com