Cia. Vale do Rio Doce, the world’s biggest iron-ore producer, may boost shipments of the raw material after the second quarter as stockpiles fall and demand from Chinese builders increases, Goldman Sachs Group Inc. said.
Shipments may rise to an annual rate of 270 million metric tons, up from about 200 million tons in the first quarter, Marcelo Aguiar, an analyst with Goldman Sachs Group in Sao Paulo, said today in an e-mailed report to clients.
Shipments from the world’s biggest iron-ore miners, including Vale, fell to “an unprecedented low level” from October 2008, when steelmakers cut output and started using up stockpiles, Aguiar said. Demand for iron ore is likely to increase from the third quarter as Chinese construction recovers, he said.
Vale may achieve a “relatively favourable” iron-ore price settlement that’s 30 percent below 2008 levels in current talks with steelmakers, Aguiar said. Prices may fall 40 percent for Australian suppliers, who gained a higher increase than Vale last year, he said.
Source: Bloomberg
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