Vale Falls 1.2% to US$13.21 as Rio Tinto Drops 1.9% | Iron Ore, Oct 14
Key Facts
- Vale’s New York shares fell 1.20% to US$13.21 on Wednesday 14 October, while Rio Tinto lost 1.94% to US$91.25 and BHP 1.99% to US$83.26.
- China’s producer prices rose 5.0% in September from a year earlier, above the 4.5% forecast, a sign of firm industrial demand.
- US inflation of 3.7% beat the 3.6% forecast, lifting the dollar and weighing on miners.
- We could not confirm the iron ore futures price for the day, so this report uses dollar-listed miners as proxies.
Today’s Focus
Iron ore miners fell on Wednesday 14 October as US inflation lifted the dollar. Brazil’s Vale, the world’s largest iron ore producer, lost 1.20% in New York.
Rio Tinto dropped 1.94% and BHP 1.99%.
China, the buyer of most seaborne iron ore, reported firm producer prices for September.
What matters today. Vale is one of Brazil’s heaviest shares and a US-listed stock, so its move drives both the Ibovespa and dollar-based portfolios.
01 The session in one read
Vale fell 1.20% to US$13.21, Rio Tinto 1.94% and BHP 1.99%. The fall was broad across miners.
The move followed the dollar, not an iron ore announcement.
Strong Chinese data did not stop miners from falling, which shows that the dollar and US yields dominated the day.
The variable to watch is whether Chinese steel output confirms the firm September data.
02 The board
| Asset | Level | Change |
|---|---|---|
| Vale (NYSE) | US$13.21 | -1.20% |
| Rio Tinto (NYSE) | US$91.25 | -1.94% |
| BHP (NYSE) | US$83.26 | -1.99% |
| Gerdau (NYSE) | US$5.17 | -0.19% |
| Dollar index (DXY) | 102.5 | +0.34% |
We could not confirm a price for iron ore futures from a reliable source, so we show the miners as proxies. Share prices reflect the dollar and stock market as well as ore.
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|---|---|---|---|---|---|---|---|
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| BVL PERÚ | 60,511.74 | -1.60% | — | — | — | — | — |
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| EUR/BRL | 5.95 | +1.01% | -5.83% | 5.89 | 5.98 | 5.94 | — |
| USD/MXN | 17.06 | -0.24% | -8.58% | 17.10 | 17.08 | 17.01 | — |
| USD/CLP | 913.98 | +0.04% | -5.67% | 913.65 | 915.11 | 906.68 | — |
| USD/COP | 3,140 | +0.03% | -22.04% | 3,139 | 3,141 | 3,105 | — |
| USD/PEN | 3.36 | -0.66% | -4.82% | 3.38 | 3.38 | 3.35 | — |
| USD/ARS | 1,493 | +0.10% | +12.96% | 1,491 | 1,494 | 1,480 | — |
| USD/UYU | 40.27 | +1.24% | +1.80% | 39.77 | 40.27 | 40.23 | — |
| USD/PYG | 5,939 | +1.68% | -19.54% | 5,841 | 5,939 | 5,925 | — |
| USD/BOB | 11.64 | -0.76% | +72.04% | 11.73 | 11.72 | 11.64 | — |
| USD/DOP | 58.34 | +1.25% | -3.44% | 57.62 | 58.34 | 58.04 | — |
| USD/CRC | 445.92 | +0.89% | -9.71% | 441.97 | 448.50 | 445.92 | — |
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03 What moved it
The US consumer price index rose 0.6% in September and 3.7% over twelve months, above the 3.6% forecast, the Bureau of Labor Statistics said. The dollar index rose 0.34% to about 102.5.
China’s producer prices rose 5.0% in September from a year earlier, above the 4.5% forecast, and its balance of trade showed a surplus of US$133.53 billion (905.97 billion yuan), against a forecast of US$118.1 billion, official data showed. Firm Chinese data usually supports iron ore, but it did not offset the dollar.
Customs data showed exports up 36.3% and imports up 31.0% from a year earlier, against forecasts of 25.5% and 24.5%. Consumer prices rose 0.9%, just under the 1.0% forecast.
Banks made 1,080 billion yuan of new loans (about US$159 billion), above the 975 billion forecast, and total social financing reached 3,550 billion yuan (about US$523 billion). Money supply grew 7.2%, below the 7.4% forecast, and outstanding loans grew 4.8%, as forecast, using about 6.79 yuan per dollar, the rate implied by the trade data.
04 The Latin American read
Brazil is the world’s second-largest iron ore exporter after Australia. Brazil’s Ibovespa fell 0.18% on Wednesday, with Usiminas, a steelmaker, down 4.76%.
The iShares MSCI Brazil fund EWZ fell 0.63% to US$42.60.
05 The names to watch
Vale is the main Brazilian name, and Gerdau is a major steel buyer. The Gerdau ADR fell 0.19% to US$5.17.
Rio Tinto and BHP are the other two large global producers.
06 The outlook
Iron ore tracks Chinese steel demand and the dollar. US retail sales on Thursday 15 October at 12:30 UTC may move the dollar again.
What it means for you: if you hold Vale through the ADR, the US dollar matters as much as ore, and Brazil’s real, near 5.03 per dollar, is stable.
07 What to watch
- China: More data on steel output and property will show whether demand holds.
- The dollar: A further rise would weigh on miners.
- Vale: Production and shipment updates are the next company-specific trigger.
- US data: US retail sales on Thursday 15 October at 12:30 UTC.
Background: Vale Falls 1.11% to US$13.37 as Rio Tinto Drops 1.31%.
Background: Brazil Stocks Drop 1.04% as Poll Shows a Tie.
More: Latin America news in English, every day from The Rio Times.
Frequently Asked Questions
Why did Vale fall on 14 October?
Vale’s New York shares fell 1.20% to US$13.21 as US inflation lifted the dollar and pulled miners lower.
What is the price of iron ore?
We could not confirm the futures price on 14 October from a reliable source, so we show miners as proxies.
What did China’s data show?
Producer prices rose 5.0% in September from a year earlier, above the 4.5% forecast.
Why does iron ore matter to Brazil?
Brazil is a leading exporter, and Vale is one of the heaviest stocks on the Ibovespa.
Market data: RT; US inflation: US Bureau of Labor Statistics; China data: National Bureau of Statistics and customs
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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