OREANDA-NEWS. October 3, 2012. Brazil's Vale, the world's largest producer of iron ore, sees prices of the commodity hovering between USD 100-USD 120 a tonne and is pushing ahead with its own mine expansion projects, a senior executive said on Thursday. Vale sees China's steel output rising between 3 percent and 5 percent next year, with Jose Carlos Martins, executive director of its ferrous and strategy division saying he was not fretting about a decline in iron ore prices, which have lost a fifth since the start of the year, to stand around USD 104 a tonne.

"I believe that prices will stay around this level for a while. At between USD 100 and USD 120 ... with a lot of volatility," Martins told reporters on the sidelines of an industry conference in the coastal city of Dalian.

Iron ore prices sagged to three-year lows at below USD 87 a tonne this month as waning steel demand in China hit appetite for the raw material. Prices have since rebounded above USD 100, but remain 30 percent below this year's peak.

Martins said he was not losing sleep over the price fall, as it had only driven high-cost producers out of the market.

"Being a low-cost producer and being focused on cost and quality, we believe that no matter the growth, we see space for our company, our projects and our ore to get the market," he said.