Vale Says Global Iron Ore Oversupply Won’t Be Norm

Vale SA says iron ore prices of $90 to $100 a metric ton are sustainable over the long term and the oversupply currently seen won’t last forever.

According to Bloomberg:

Demand for ore in China, the biggest buyer, may expand 3 percent this year and next year, Claudio Alves, global director of ferrous marketing and sales at the world’s largest producer, said at a port-inauguration ceremony in Malaysia today, and in comments to a Bloomberg reporter. In the long term, the market won’t be oversupplied all the time, said Alves.

Caludio Alves, global director of ferrous marketing and sales for Vale, said:

“I don’t think the market will be oversupplied forever. Only the big suppliers with world-class assets, scale of production, efficiency and good costs, they’ll be able to survive.

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