Stronger seasonal demand for iron ore in China and slower growth of supply worldwide will likely lead to a recovery in iron ore prices in the second half of the year, the director for ferrous and strategy for Brazil's Vale said.
"We are seeing a period of shutting mines, eliminating the less competitive facilities," Jose Carlos Martins said during a conference call Thursday.
Historically, Chinese demand is stronger during the second half of the year, he said, adding that he sees the iron ore growth rate slowing to 50 million mt in the second half of 2014, compared with 90 million mt added during the first half.
In the first half of the year, better weather conditions during Brazil's wet season and Australia's cyclone season led to higher production in the iron ore industry, Martins said.
"There was the anticipated ramp-up in Australian projects, but despite that, [first-half] demand was lower than expected, leading to a price correction," he said.
Vale's iron ore sales in Q2 fell 11% year on year to $5.3 billion from $6 billion, but rose 4% compared with Q1 sales of $5.1 billion, the company said in an earnings report. Vale's average realized Q2 price for iron ore fines was $84.60/wet mt, excluding run-of-mines sales, $10.20/wmt lower than the Q1 price.
Source: Platts
- metaljunction »
- Metal News
Metal News & Events
METALJUNCTION PUBLICATIONS
Coal Insights (English) Monthly
Coal Insights is a ready reckoner for anyone associated with coal. This publication is aimed at tracking everything related to coal in India.
India Coal Market Watch(English) Monthly
ICMW is a one-stop source for all news, data and research pertaining to coal demand, consumption, stocks, spot- and long-term prices with respect to the Indian Market.
India Steel Market Watch (English) Monthly
ISMW is a brand new high-end steel market report, covering all aspects of the steel industry in India.
Steel Insights(English) Monthly
Steel Insights delves into various facets of the domestic and global steel industry such as market fundamentals, raw material price trends, price forecasts etc.