Vale Says Says Global Iron Ore Oversupply Won’t Last Forever
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Iron ore prices of $90 to $100 a metric ton are sustainable over the long term, according to Vale SA, which predicts that some producers that started output when prices were much higher won’t be able to survive the slump.
Demand for ore in China, the biggest buyer, may expand 3 percent this year and next year, Claudio Alves, global director of ferrous marketing and sales at the world’s largest producer, said at a port-inauguration ceremony in Malaysia today, and in comments to a Bloomberg reporter. In the long term, the market won’t be oversupplied all the time, said Alves.