The global iron ore price should not fall under $60/tonne, says Brazil`s Vale ceo Fabio Schvartsman. The executive was speaking during the Brazil Investment Forum held in Sao Paulo, Kallanish notes.
This is the estimated 'base"' level for the commodity during this year. This happens while the iron ore market is changing driven by increasing interest in higher quality iron ore by China, and the exhaustion of many Australian and Chinese mines.
"We will have a greater predictability in iron ore prices. Thus, in any given price scenario, the market will be able to easily forecast Vale’s performance," Schvartsman added. “After Vale has completed its largest project with the opening of S11D, high grade iron ore could be sold with a premium in the international market and to the benefit of the company,” the ceo continued.
The executive also confirmed that Vale is focused on optimising its cost structure, but could soon announce new investments in Brazil. Vale's operations in Brazil have suffered a "... limited impact" from the truck drivers' strike, but the consequences for the company may worsen if the protests continue, according to Schvartsman.
"If the strike continues for a few more days, it will be inevitable that output will be reduced as a result of the lack of materials that are needed for our production," Vale`s ceo said.