Brazilian iron ore miner Vale has registered a rise in Chinese demand for ore and other metals, despite the global economic crisis, the company's financial officer, Fabio Barbosa, said Monday.
Barbosa said shrinking stocks in the world's largest importer of iron ore had helped demand but added there was still considerable uncertainty over demand globally.
"It seems that there is a sign of recovery, of improvement, and in the case of China, it's more pronounced," said Barbosa during a seminar. "It is not visible in the global scene but in the case of China, it certainly is."
Barbosa's comments come as the world's largest iron ore miners -- including Vale, BHP Billiton and Rio Tinto -- and major Asian and European steel makers continue annual negotiations on the term price for ore.
Given the fall in world demand for steel, the main end purpose for iron ore, many in the industry expect annual term contract prices to fall for the first time since 2002.
Earlier Monday, China's vice chairman at the Commerce Ministry's trade department, Liang Shuhe, said his country's iron ore imports surged in February and March due to "fake demand" brought about by stockpiling.
Liang said imports would likely fall over the rest of 2009.
Barbosa added that it was important for the mining sector that the North American economy return to growth, as it represented a quarter of global demand for iron ore and metals.
"We are in a hiatus period for growth, an adjustment period, but the trend for improvement in the long term is clear," Barbosa said.
Source: Reuters
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