Industry News

Vale Sees Beijing Olympics as Key for Iron Ore Turnaround

Views : 132
Update time : 2021-11-30 17:58:53

Vale SA, the world’s second-largest iron ore producer, sees the Beijing Winter Olympics as the turning point for the steelmaking ingredient. 

Iron ore futures have lost about half their value since mid-July as China limited steel output to contain pollution and power use. Some of those efforts were to ensure clean skies for the Olympics in February, according to Luciano Siani, Vale’s head of strategy and business transformation. 

As a result, prices may continue to weaken heading into the games, before a likely turnaround in the second and third quarters of next year, he told reporters in New York on Monday.

The recovery argument is also supported by signs that Chinese policy makers are already considering measures to encourage growth, Siani said. In addition, supply is constrained, with the La Nina weather phenomenon potentially impacting Australian operations and rain starting earlier in Brazil, he said, while India is set to absorb more of its domestic production. 

“So the second and third quarters, we see good prospects for price because of that,” Siani said. 

Still, he doesn’t see a resumption of the kind of wild swings seen over the last year or so, with prices unlikely to go much below $90 a metric ton or breach the $120 level on the upside.

Related News
Read More >>
South Africa launches critical minerals strategy, opens new mining law for public comment South Africa launches critical minerals strategy, opens new mining law for public comment
May .22.2025
South Africa launches critical minerals strategy, opens new mining law for public comment
China's iron ore production declines in Jan-Apr China's iron ore production declines in Jan-Apr
May .22.2025
China's iron ore production declines in Jan-Apr
US’ steel coil exports go up in Mar US’ steel coil exports go up in Mar
May .22.2025
US’ steel coil exports go up in Mar
US increases CRC imports in Mar US increases CRC imports in Mar
May .22.2025
US increases CRC imports in Mar