Vale Slashes Iron Ore Production Guidance

The Wall Street Journal reported this week that Brazilian mining giant, Vale SA, announced a cut to its production guidance for iron ore in 2016. With global surplus still weighing heavy on prices, the miner will be reducing its output by almost 10 percent.
According to The Wall Street Journal:

Vale, the world’s largest iron-ore producer, now expects to mine between 340 million and 350 million metric tons of the commodity next year, compared with a previous forecast of 376 million tons, the company said in a presentation…
This market glut, combined with a strengthening U.S. dollar, has decimated prices for iron ore in recent quarters. The Steel Index’s benchmark spot price fell to $42.80 per ton on Monday, down 40% from a year earlier and a fraction of the $100-per-ton floor that Vale and other mining companies once used for their long-term plans.

Click here to view the full article on The Wall Street Journal.