While the China Iron and Steel Association (CISA) and global ore giants are discussing iron ore demand and supply for the coming year, the Brazilian mining company Vale is busy building its own shipping fleet and setting up distribution centers in China.
With shipping costs two or three times those of the Australian-based miners Rio Tinto and BHP Billiton, Vale is now accelerating its steps to establish port facilities in China and to buy carriers, in an attempt to build up a logistics system for its iron ore, reduce transportation costs and increase its competitiveness in the Chinese market.
Actively engaged in its construction plans, for the time being Vale appears to be in no hurry to start negotiations with the Chinese mills.