Vale SA (VALE5), the world’s largest iron- ore producer, headed to the lowest in more than a month after prices for the steelmaking material slid.
Vale, based in Rio de Janeiro, dropped 1.7 percent at 12:21 p.m. in Sao Paulo, the worst performer in the MSCI Brazil/Materials index, after falling as much as 2 percent. A close at that level would be the lowest since Dec. 13 for the stock, which traded at 26 percent of the three-month daily average volume.
Iron ore for immediate delivery slid 4.9 percent to $145.40 a ton today, the biggest fall since Nov. 28, according to data compiled by The Steel Index Ltd. The decline, which is putting an end to a rally since September, is bringing down the price of Vale shares, said William Castro Alves, an analyst at brokerage XP Investimentos.
“This is totally linked to the correlation between Vale and iron-ore prices,” he said in a telephone interview from Rio today. “The recent iron-ore increase was not sustainable.”
To contact the editor responsible for this story: James Attwood at email@example.com