Bloomberg reports Rio de Janeiro-based Vale SA, the world’s largest iron-ore producer, said prices for the raw material have stabilized and are recovering from “rock bottom” levels as a result of lower-than-expected production and strong demand from China, India and South America.
Bloomberg reports iron ore for immediate delivery has gained 8% to $126.30 a tonne since reaching its lowest level in almost two years on Oct. 28.
MINING.com reported at the end of October, with prices down around 30% during the month, Vale’s competitors Rio Tinto and BHP Billition have begun to respond to demands from Chinese steelmakers to sell iron ore on monthly contracts, or even at spot prices, which are up to 25% cheaper than quarterly contracts, but Vale is sticking to the quarterly-pricing model, saying “we have implemented the quarterly pricing system very successfully on a global basis.”
MINING.com reported at the end of September the big 3 iron ore miners see no China weakness in the longer term and believe iron ore imports could climb another 60% as the building boom in the country show little sign of abating.
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