Beijing Olympics key to iron ore recovery for Brazil’s Vale
RIO DE JANEIRO, BRAZIL – The world’s second-largest iron ore producer, Vale (VALE3), is eyeing the Beijing Winter Olympics as a turning point for the raw material for steelmakers.
Iron ore futures have lost approximately half their value since mid-July as China has limited steel production to curb pollution and energy use. Some of these efforts were aimed at ensuring clear skies for the Olympics in February 2022, according to Vale’s head of strategy and business transformation Luciano Siani.
As a result, prices may continue to drop at the start of the games, before a likely turnaround in the second and third quarters of next year, he told reporters in New York on Monday.
The rebound scenario is also underpinned by indications that Chinese parliamentarians are now considering measures to encourage growth, Siani said. In addition, supply is constrained, with the La Niña weather phenomenon potentially impacting Australian operations and rains starting early in Brazil, he said, while India is expected to absorb more of its domestic production.
“So for the second and third quarters, we see a good outlook for the price because of this,” Siani said.
Nevertheless, he doesn’t expect a pickup with the sharp fluctuations seen last year, with prices unlikely to drop much below US$90 a metric ton or breach the US$120 level on the upside.
Live Market IntelligenceBrazil — Live Market Board
Rio Times · Live Market Intelligence
Brazil — Live Market Board
+1.85%
171,031.73
+1.85%
65,729.18
+2.14%
11,338.38
+0.89%
2,913,184
+1.30%
2,459.23
+0.61%
58,698.13
+2.60%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 171,031.73 | +1.85% | +21.85% | 167,927.15 | 168,310 | 167,142 | — |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
| SELIC | 14.00% | — | — | — | — | — | |
| PETR4 | 41.64 | -0.05% | +35.19% | 41.66 | 41.97 | 41.15 | 41,499,400 |
| VALE3 | 72.97 | +0.83% | +30.75% | 72.37 | 73.54 | 72.66 | 17,658,000 |
| ITUB4 | 38.60 | -1.03% | +4.57% | 39.00 | 39.34 | 38.39 | 29,487,800 |
| BBDC4 | 16.85 | +0.36% | +3.50% | 16.79 | 16.90 | 16.67 | 19,416,900 |
| BBAS3 | 19.37 | +0.47% | +0.73% | 19.28 | 19.44 | 19.16 | 11,069,200 |
| B3SA3 | 14.26 | -0.21% | +12.73% | 14.29 | 14.47 | 14.11 | 33,037,800 |
| ABEV3 | 14.89 | -0.80% | +21.91% | 15.01 | 15.07 | 14.81 | 16,453,100 |
| WEGE3 | 47.59 | +0.49% | +29.99% | 47.36 | 48.08 | 47.36 | 3,364,600 |
| PRIO3 | 59.14 | -0.19% | +50.67% | 59.25 | 59.81 | 58.74 | 3,325,600 |
| SUZB3 | 41.33 | +2.35% | -23.55% | 40.38 | 41.48 | 40.35 | 3,914,900 |
| RENT3 | 34.68 | -0.09% | +0.84% | 34.71 | 34.96 | 34.35 | 7,979,100 |
| AZZA3 | 15.89 | -2.63% | -53.76% | 16.32 | 16.42 | 15.82 | 1,330,300 |
| CSNA3 | 4.30 | +0.47% | -42.65% | 4.28 | 4.41 | 4.26 | 10,076,100 |
| GGBR4 | 24.69 | +2.19% | +51.38% | 24.16 | 24.85 | 24.18 | 7,047,600 |
| ENEV3 | 24.21 | -1.38% | +70.49% | 24.55 | 24.64 | 23.99 | 9,297,000 |
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