Iron Ore Price, page-6621

Vale bullish as iron ore price lifts 5pc


The iron ore price has risen as the boss of Brazilian producer Vale says he expects prices to strengthen over the longer term.

Iron ore added 4.9 per cent to $US55.90 a tonne, snapping a five-session streak of either falling or holding steady.

The price rise buoyed a number of major producers in London trade. Australian mining giant BHP Billiton put on 2.3 per cent, while rival Rio Tinto added 2.2 per cent.

Meanwhile, Anglo American shares jumped 6.9 per cent and Glencore added 3.4 per cent.

The gains come as Vale chief executive Murilo Ferreira says he expects the commodity price to hold between $US65 and $US80 in the long term, according to media reports.

The company also expects to increase its sales to China by 40 per cent to 250 million tonnes, aiming to surpass BHP Billiton and Rio Tinto to become the Asian giant’s largest supplier of iron ore.

Vale’s bullish price forecast comes in contrast to other analysts’ more pessimistic short-term predictions.
McKinsey expects the commodity to trade between $US45 and $US50 a tonne this year, and sees no real improvement in steel consumption in China, Bloomberg reported.

Goldman Sachs recently issued an even more negative forecast, warning of an average price in the $US30s and $US40s for the rest of the year.