The world's largest iron ore mining company Brazil-based Vale is losing its dominant position as a supplier of iron ore to Brazilian steelmakers, with Vale currently supplying about half of the iron ore used by Brazilian steel mills, as Reuters has reported.
Vale's director of marketing, sales and strategy, Jose Carlos Martins, stated that Vale supplied 70 percent of all iron ore used by Brazilian steel mills in 2004 and that its share might decrease to 30 percent by 2015. Part of the decline has resulted from large local steelmakers such as Gerdau and CSN boosting their own production of iron ore, Mr. Martins added.
"Vale needs to pay attention to this loss of market share in Brazil," Martins said during an industry conference. "To participate in this market, you have to produce steel," he continued. To regain its share in the Brazilian iron ore market, Vale is investing in local steel production by acquiring minority stakes in Brazilian mills. In the coming years, the company also plans to build three new steel mills.