Investors betting against China and the nation’s demand for iron-ore from top producer Vale SA (VALE5) will be proven wrong, Chief Executive Officer Murilo Ferreira said.
“The biggest enemy to our share price is a certain belief that China will be over,” Ferreira said during a presentation in Sao Paulo today. “They are once more betting against China as they did in 2004, 2005, 2006 and beyond and I think that people are going to fail again with their projections.”
Shares of Vale, which ships about half its iron ore and pellets to China, dropped to a five-year low earlier this month on concern a possible economic slowdown in the biggest buyer of the mineral will hurt the company’s sales. Iron-ore entered a bear market on March 7, losing 23 percent from a five-month high in August through today, as Australian miners including Rio Tinto Group boost supply and China tightens monetary conditions.
Vale rose 0.1 percent to 26.58 reais at 1:55 p.m. in Sao Paulo, after declining as much as 1.2 percent earlier. Iron-ore prices for immediate delivery were unchanged today at $110.50 a ton, according to data compiled by The Steel Index Ltd.
To contact the editors responsible for this story: James Attwood at email@example.com Carlos Caminada, Robin Saponar