Brazil-based mining giant
Vale SA's executive officer of marketing, sales and strategy, Jose Carlos Martins, stated at an industry conference on Wednesday, September 28 that global
iron ore supply will be tight for the next few years due to strong steel demand in emerging economies and "disappointing" levels of
iron ore capacity in recent years.
Another global recession is not likely to happen despite some risks from Europe's debt crisis and the softened growth of the
US economy, the
Vale official said. In addition, fast-growing emerging markets are supporting the steel industry's fundamentals, he continued, adding that therefore global
iron ore supply will be tighter in the coming years. However, some projects planned by
iron ore companies may face "significant risks of delays" due to factors such as environmental concerns.
Mr. Martins also said the current quarterly
iron ore pricing system is fair, as it is based on market prices that reflect fundamentals