Vale SA, the world’s largest iron-ore producer, gained the most in two months and beat metals and mining peers as prices for the steelmaking material rebound.
Vale, based in Rio de Janeiro, advanced 4.5 percent to 29.95 reais at the close in Sao Paulo today, the biggest increase since April 3. The stock, which traded at 1.15 times its three-month daily average volume, was the best performer in the MSCI Brazil/Materials index, which rose 3.8 percent.
Iron ore for immediate delivery rose 1.4 percent to $111.90 a ton today, the first increase in eight days, according to data compiled by The Steel Index Ltd. The recovery is driving up the share price of Vale, which is increasingly delivering its iron ore at spot prices, said Rodrigo Garcilazo, an equity analyst at GBM Grupo Bursatil Mexicano SA.
“The share price is every time more impacted by iron ore spot prices,” he said in a telephone interview from Santiago, Chile, today. “At current prices, shares are attractive.”
MMX Mineracao & Metalicos SA, the iron-ore producer of Brazilian billionaire Eike Batista, rose 2.4 percent.