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Vale to Continue Upping Iron Ore Output After 2017 in Hopes of Regaining Market Share
Dec. 06, 2012 03:39PM PST
Base Metals Investing Bloomberg reported that after reaching 400 million metric tons of iron ore output in 2017, Vale SA (NYSE:VALE) plans to increase its iron ore output by 20 to 25 million metric tons per year. Vale’s plan is aimed at taking back the 6 percent of market share that it has lost to other major companies — such as BHP Billiton Ltd. (ASX:BHP,NYSE:BHP,LSE:BLT) and Rio Tinto plc (ASX:RIO,NYSE:RIO,LSE:RIO) — over the past six years.
Bloomberg reported that after reaching 400 million metric tons of iron ore output in 2017, Vale SA (NYSE:VALE) plans to increase its iron ore output by 20 to 25 million metric tons per year. Vale’s plan is aimed at taking back the 6 percent of market share that it has lost to other major companies — such as BHP Billiton Ltd. (ASX:BHP,NYSE:BHP,LSE:BLT) and Rio Tinto plc (ASX:RIO,NYSE:RIO,LSE:RIO) — over the past six years.
As quoted in the market news:
Vale is cutting investments, suspending projects and selling assets as demand wanes in China and Europe, the company’s two biggest markets. The company’s share of the global seaborne iron-ore market declined to about 26 percent in the first half from almost 28 percent a year earlier, according to data compiled by Bloomberg Industries. Vale has struggled with declining resources at older mines and production delays caused by heavy rains earlier this year.