Brazil mining and iron ore producer Vale is forecasting a difficult 2015, local media reported this week.
Prices for iron ore should be stable next year, but not lower than 2014’s prices, Vale exeutives estimated. “2015 will be a difficult year, but it’s hard to determine prices, probably they won’t reach lower figures than the ones we have today,” Peter Poppinga, Vale’s ferrous director, said.
Despite forecasting a challenging 2015, Vale expects iron ore supplies to diminish. According to news reports, Vale’s ferrous director said Chinese transoceanic demand for iron ore in 2015 should reach 1.5 billion mt. The executive said about 220 million mt of iron capacity will not have competitiveness to keep operating at $70/mt.
According to reports, Vale expects a decrease in iron ore supplies. However, the company did not disclose any figures for the decrease in supply.
Reports said the executive estimated between 50 and 60 million mt of the product stopped being produced. In China, that number is thought to have reached 100 million mt in 2014.
“We’ve focusing in the optimization of our margins,” Poppinga told reporters in a press conference.