According to Finance Director Vale Luciano Pires'an, world iron ore prices will fall due to the reduction in global demand. He noted that the incipient recovery in steel production in China will be offset by the stops of factories and blast furnaces in other parts of the world.
According to XI'an, in Europe, has halted steelmaking units total annual capacity of 15 million tons. In the USA in simple are 5 million tons of mof Amnesty, and in Japan – 3.3 million tons.
Extraction Vale< / span> by 20% last year to 302 million tons after the Brazilian miner was forced to close several businesses after a deadly breakout of the tailings dam, which killed more than 250 people.
this year the company plans to produce 340-355 million tons of iron ore, but the achievement of this goal will depend on obtaining permits for the restoration of 30 million tonnes of closed capacity.
Suggesting that Vale reach your goal, and Beijing will not launch a major new aid package to stimulate economic growth, most analysts expect iron ore prices will decline from current levels.
One of the reasons is the decline in demand from the increasingly congested steel industry in China, which continued to produce metal during the crisis with the coronavirus, as well as a decline in industrial activity in the rest of the world.
"the Excess physical steel market in China is likely to lead to a drop in steel prices and delay in the funnel of iron ore", - analysts say Citi.
