Bloomberg reported this week that Vale CEO, Murilo Ferreira sees iron ore prices coming back up to $110 a pound on growing demand from China. Together with fellow major miners like Rio Tinto (NYSE:RIO), Vale is upping its mine production on the belief that higher volumes will balance lower prices, according to Bloomberg.
As quoted in the publication:
Iron-ore prices, which fell below $90 per dry metric ton last month, have been curbed by higher supply from Australian producers in the first part of the year, Vale Chief Executive Officer Murilo Ferreira said in an interview today. No additional supply by Australian companies is expected in the second part of the year, helping prices to recover, he said.
The CEO stated:
There is no reason to change our conviction that $110 is a sustainable price in the long-term. It’s normally imprudent to make short-term forecasts.”