Vale plans to invest $34 billion just in its iron-ore mines and logistics systems in the next five years
RIO DE JANEIRO–Brazilian mining giant Vale SA (VALE) sees the global iron-ore market shifting into surplus territory in coming years, with producers building up excess capacity equivalent to around 5% of demand, a top executive said Monday.
But the world’s largest iron-ore producer still doesn’t see benchmark prices falling below $100 per metric ton, given that around 30% of output comes from high-cost mines that would likely shutter below that price level, Jose Carlos Martins, Vale’s executive director of ferrous and strategy, said at a steel conference.
“In the next three to five years, we really believe iron-ore prices will stay above $100, and probably between $110 and $120,” Mr. Martins said.
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