In a call with analysts on Vale’s quarterly results, Chief Executive Officer Eduardo Bartolomeo and executive director Marcello Spinelli said recovered inventories in China will give the producer more flexibility on sales going forward.
The move should help to stabilize the world’s supply and demand for the raw material, they said.
Vale’s stock rose almost 3% to 62 reais in Sao Paulo following the quarterly financial results on Wednesday night and the company’s announcements on Thursday.
The world’s second largest iron ore producer increased production by 31% in the quarter compared with the previous three-month period. But it surprised the market by holding back part of its output to rebuild stocks, helping to push international iron ore prices to a six-year high in September.
