Vale Sees No Let-up in Iron Ore Output, Short-Term Volatility
OREANDA-NEWS. September 30, 2011. Top iron ore miner Vale plans to produce at full capacity in 2012, reflecting optimism that its biggest market
"We have received complaints from Chinese steel mills that their production costs are high and domestic steel prices aren't doing well, but there are no delays or cancellations so far," Jose Carlos Martins, Vale's executive director for sales and marketing, told reporters on the sidelines of an industry conference in China's northeastern city of Qingdao.
Benchmark
The weakness in
"In the short term, we may have some volatilities but we believe the overall market is still strong," Martins said.
He said it was "hard to tell" how severe the impact of a potential prolonged economic slowdown in Europe and the
But he said
"I believe that like the 2008 crisis, emerging markets will emerge even stronger than they emerged from the last crisis," he said.
Many economists at investment banks and the Chinese government have dismissed fears of a hard landing in the world's second-largest economy, saying that
'EMERGE EVEN STRONGER'
Martins said Vale plans to produce iron ore at full capacity next year and is targeting to sell around 130 million tonnes to
That amount represents more than 40 percent of Vale's total iron ore output of 308 million tonnes in 2010 and its 2011 target of 310 million tonnes.
Vale is undertaking an ambitioUSD 24 billion investment plan expected to be completed by the first quarter of 2012 and is targeting to boost iron ore output to 469 million tonnes by 2015.
Australian miner Fortescue Metals Group Ltd said on Wednesday it expects
Martins said Vale has agreed fourth-quarter iron ore contracts with Chinese steelmakers at prices "stable" from the third quarter, in line with earlier industry estimates.
Martins also said Vale could lease or sell its planned fleet of giant bulk carriers, but it had not been approached by Chinese firms so far.
"We are open to various partnerships for the 19 vessels... but we are not in talks with any Chinese shipping companies on those ships," he said.
Vale had planned to own a fleet of 19 dry bulk freighters to cut shipping costs from
But in June, Vale's first iron ore carrier failed to access Chinese ports and was forced to divert to Italy on its maiden voyage for what the company said were commercial, not political, reasons.
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