Bloomberg Anywhere Remote Login Bloomberg Terminal Request a Demo

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Vale CEO Sees ‘Transitory’ Iron-Ore Price Decline in China

Jan. 21 (Bloomberg) -- Vale SA, the world’s largest iron-ore producer, considers a drop in the metal price in China as “transitory” because the Asian country’s economic fundamentals are solid, the chief executive officer said.

“Chinese steelmakers are working with lower levels of inventory now because the credit is not available as it was,” CEO Murilo Ferreira told reporters today in Brasilia. “But this is a transitory position.”

Iron ore futures for May delivery on the Dalian Commodity Exchange slid 1.6 percent to close at 847 yuan ($140) a ton today, the lowest since the contract’s Oct. 18 debut. Vale slid 2.4 percent in Sao Paulo trading today to 28.48 reais.

Goldman Sachs Group Inc. said in a Jan. 20 report that iron ore is moving into oversupply this year, with prices seen falling to $108 a ton in 2014 and $80 a ton in 2015.

To contact the reporters on this story: Rachel Gamarski in Brasilia Newsroom at rgamarski@bloomberg.net; Mario Sergio Lima in Brasilia Newsroom at mlima11@bloomberg.net

To contact the editor responsible for this story: James Attwood at jattwood3@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.