Vale SA, the world’s largest iron-ore producer, climbed to a seven-month high as prices for the steelmaking material rebound.
Vale, based in Rio de Janeiro, climbed for an eighth day, gaining 1.7 percent to 41 reais at the close in Sao Paulo, the highest since May 3. The Brazilian benchmark Bovespa Index gained 1.5 percent.
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.