July 23 (Bloomberg) -- Vale SA, the world’s largest iron-ore producer, dropped the most in more than two months as prices for the steelmaking raw material fell to the lowest since November. MMX Mineracao & Metalicos SA, the mining company of Brazilian billionaire Eike Batista, also slumped.
Vale, based in Rio de Janeiro, lost 2.6 percent to 36.88 reais in Sao Paulo today, the biggest drop since May 17. MMX declined 3.5 percent to 5.31 reais, the lowest close in a week. Brazil’s Bovespa benchmark index dropped 2.1 percent.
Iron ore for immediate delivery fell 1.1 percent to $123.60 a ton today, its ninth consecutive decline to the lowest since Nov. 4, according to data compiled by The Steel Index Ltd. Prices for the mineral used to produce steel are being hurt by the economic slowdown in China, the biggest iron-ore consumer, said Leonardo Brito, an equity analyst at hedge fund Teorica Investimentos.
“These iron-ore prices are worrying,” he said in a telephone interview from Rio de Janeiro today. “Vale is suffering from that.”
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