China Doomsayers Misguided in Vale Rout, CEO Says

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 reporters on this story: Juan Pablo Spinetto in Rio de Janeiro at jspinetto@bloomberg.net; David Biller in Rio de Janeiro at dbiller1@bloomberg.net

Photographer: Jerome Favre/Bloomberg

Murilo Ferreira, president and chief executive officer of Vale SA, speaks during the Credit Suisse Asian Investment Conference in Hong Kong, China. Close

Murilo Ferreira, president and chief executive officer of Vale SA, speaks during the... Read More

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Photographer: Jerome Favre/Bloomberg

Murilo Ferreira, president and chief executive officer of Vale SA, speaks during the Credit Suisse Asian Investment Conference in Hong Kong, China.

To contact the editors responsible for this story: James Attwood at jattwood3@bloomberg.net Carlos Caminada, Robin Saponar

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