Vale expects average iron ore prices to stay near $70/mt for the remainder of 2017, according to statements from the company’s ferrous minerals executive director, Peter Poppinga. He added that prices for the commodity this year should be higher when compared to last year’s price levels.
Despite the increased outlook for iron ore prices when compared to 2016’s price levels, Poppinga’s new estimate is less optimistic than the forecast he gave in February this year, when he said Vale expected iron ore prices to stay around $80/mt in 2017.
“There’s no reason why prices should be lower than last year. Actually, we think they are going to be significantly higher than last year (…) We said it should be something around $70 a ton, which actually is the breakeven when you look to some seaborne, low-quality seaborne marginal players, and which is also not so far away from the breakeven in terms of Chinese concentrates,” he said.
Poppinga also estimated new supplies of seaborne iron ore this year should reach 70 million mt, down from 150 million mt last year.