Vale mining company, (Vale is a multinational mining company based in Rio de Janeiro-Brazil and the largest iron ore and nickel producer in the world. The company is also one of the world's main logistics companies. Ç. N.) Winter Olympics planned to be held in February next year in China He thinks that iron ore prices will rise in the aftermath, with the Beijing administration likely to allow more steelmakers to increase their production capacity again.
In order to reduce air pollution before the sports event in question, the Chinese administration asks the factories that produce in various sectors, including the steel industry, to cut production.
Luciano Siani, the firm's VP of Strategy and Business Transformation, told reporters after a meeting with investors on the New York Stock Exchange on Monday (11/29/2021) that industrial work in China will accelerate after the end of the games, and the acceleration will also affect iron ore prices. He said he was waiting for the upgrade.
On the other hand, while Siani does not expect a big price increase, he predicts that the price of one ton of steel raw material will likely stay between US$90 and US$120 or US$130.
The spot price of 62% iron-containing iron ore to be delivered to China rose by US$3 per tonne to US$105 on Monday (29/11/2021), according to information compiled by the SteelHome consulting firm.
Iron ore prices were falling sharply from their peak of over US$230 per tonne in May.
Siani also spoke about the future of several of the company's business units, which are responsible for coal and other mining products such as base metals.
The vice president informed that talks on the sale of the coal unit are ongoing and an announcement will likely be made early next year.
Regarding the unit responsible for base metals, Siani, the company manager, stated that his company is working to make this unit more independent from the other units of the company, and if Vale company decides to continue on this path, it may have the option to dispose of the unit responsible for base metals.
However, Siani announced that no decision will be made before 2023 regarding base metals.
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