RIO DE JANEIRO - Executives at Brazil's Vale, the world's second largest iron-ore producer, said premiums for the commodity were at a "unique moment" and that they were also confident regarding the trajectory of copper in 2021.
In a conference call with analysts to discuss the company's 2020 financial results, executives attributed high iron ore prices to factors including a ban by China on Australian coking coal. Coking coal, like iron-ore, is a vital ingredient in steelmaking.
"The fact is that there are some extraordinary points here. The first of them is the extremely high coke prices in China," Marcello Spinelli, Vale's head of ferrous metals, said.
"Winter logistics are also playing a role, but a very large effect in any case is the Chinese strategy with respect to Australian coal."
Iron ore prices reached a record in December on China's Dalian Commodity Exchange.
Copper prices have this week surged to their highest in almost a decade, although they were falling on Friday.
The executives still saw significant upside, saying Vale has not contracted any hedges for the metal.
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