Vale’s CEO bullish about iron ore in 2013
Murilo Ferreira, CEO of Brazil’s mining giant VALE (NYSE: VALE) said he expect less volatility in terms of iron prices for 2013, local newspaper Folha de S. Paulo reports.
Unlike Sam Walsh, head of Rio Tinto's iron ore business, Ferreira said he is happy with current iron ore prices of around $150 a tonne, but acknowledged the scenario is not as promising as those of recent years.
Vale, which is the world number one producer of the commodity, believes the firm will benefit from a recovering Chinese demand for construction and manufacturing materials.
“I don’t see a scenario that is as pessimistic as in September 2012, or as exuberant as in 2008 and 2010, when prices reached $200,” Ferreira said.
According to the top executive, the high iron ore prices being recorded in January were driven mostly by Asian demand.
Iron ore traded in 2012 as high as $150 a tonne and as low as $87.50 a tonne, making it one of the worst performers in the international commodities market.