Top Iron Miner Vale Gains After CEO Says China Demand Recovering
Vale SA (VALE3), the world’s largest iron- ore producer, rose the most in a week after Chief Executive Officer Murilo Ferreira said the company will benefit from a recovery in Chinese construction and manufacturing.
Demand for steel is higher amid a “more favorable” environment in China, the company’s biggest client, Ferreira told reporters in Brasilia yesterday. Prices for iron ore, the main ingredient for making steel, will be less volatile this year after a “significant” recovery, he said.
“I don’t see a scenario that is as pessimistic as in September 2012, or as exuberant as in 2008 and 2010, when prices reached $200,” Ferreira said.
Iron ore posted the biggest quarterly climb on record in the final three months of 2012 and jumped 82 percent since a three-year low on Sept. 5 as Chinese mills restock. Ore with 62 percent content delivered to Tianjin rose to $158.50 a dry ton on Jan. 8, the highest since October 2011, according to data from the Steel Index Ltd. Prices fell to $158.20 yesterday.
Vale, based in Rio de Janeiro, added 0.7 percent to 40.57 reais in Sao Paulo yesterday, the most since Jan. 2, after advancing as much as 1.1 percent on Ferreira’s comments. Brazil’s benchmark stock index rose 0.2 percent.
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