Vale iron shipments may rebound after Q2 - Analyst

Monday, Apr 13, 2009

Bloomberg reported that Cia Vale do Rio Doce may boost shipments of the raw material after the Q2 as stockpiles fall and demand from Chinese builders increases.

Mr Marcelo Aguiar an analyst with Goldman Sachs Group in Sao Paulo said that shipments may rose to an annual rate of 270 million tonnes, up from about 200 million tonnes in the Q1.

Mr Aguiar said that shipments from the world’s biggest iron ore miners, including Vale, fell to an unprecedented low level from October 2008, when steelmakers cut output and started using up stockpiles. Demand for iron ore is likely to increase from the third quarter as Chinese construction recovers.

He said that Vale may achieve a relatively favorable iron ore price settlement that’s 30% below 2008 levels in current talks with steelmakers. Prices may fall 40 percent for Australian suppliers, who gained a higher increase than Vale last year.