Replies to post #3107 on The Rising Influence of Rising Affluence

[DewDiligence]

VALE Sees Bullish Iron-Ore Market in 2H11

[VALE’s CFO says iron exports to China will rise slightly in 4Q11 and the average price per ton for VALE’s overall output will rise slightly in 3Q11. Please see #msg-64938685 for related info.]

http://www.reuters.com/article/2011/07/29/vale-china-idUSN1E76S18D20110729

›Fri Jul 29, 2011 1:50pm EDT

RIO DE JANEIRO, July 29 (Reuters) - Brazilian mining giant Vale (VALE5.SA), the world's largest iron ore producer, said on Friday it expects China's iron ore imports to stay steady in the third quarter and rise slightly in the fourth quarter. China, the world's largest consumer of iron ore and Vale's largest single client, has seen some economic slowdown in recent months as the country seeks to control inflation.

"I see a stable situation in the third quarter, and there is some possibility for increase in the last quarter, that is what normally happens in the Chinese market," said Jose Carlos Martins, Vale's Director for Marketing, Sales and Strategy during a conference call with analysts.

Vale is maintaining its 2011 iron production target of 310 million tonnes this year.

Its average realized price for iron ore, which in the second quarter was lower than expected at $145.30 per tonne, will likely rise by around $7 per tonne in third quarter, Martins said. Higher moisture in the iron ore, caused by rains, lowered the sale price of the product [during 2Q11], he said.‹

[DewDiligence]

These comments on Chinese demand for iron ore by the CEO of Fortescue Metals echo those from VALE in #msg-64938685:

http://www.theaustralian.com.au/business/mining-energy/chinese-demand-set-to-soar-says-power/story-e6frg9df-1226150336750