- Vale (VALE -2.9%) says it sees FY 2018 iron ore production of 390M metric tons before reaching a ceiling of 400M metric tons in 2019, which it expects to maintain at least through 2023.
- Vale's iron ore will continue on a track to increase high-grade and lower-impurity materials and pellets, CEO Fabio Schvartsman says, as he expects China's demand for higher-grade ores to cut pollution and boost efficiency "is here to stay."
- The CEO also says the recent drop in global steel prices is temporary due to overproduction in China ahead of winter output cuts.
- Schvartsman says global capacity utilization in the steel sector has climbed to 76% this year from 73% last year, indicating excess capacity in the sector is shrinking, giving steelmakers pricing power.
- Finally, the CEO says the Samarco mine in Brazil likely will restart in early 2020, bringing a major source of high-grade iron ore back into the market.
- Now read: Primary Metals Korea: Finding The Bottom As Worries Continue
Original article