From the Australian Financial Review: ‘Everyone is nervous’ about iron ore, says Vale

Gated but main points:

  • Brazilian mining giant Vale has admitted it is nervous about the plunge in iron ore prices below $US80a tonne as the Chinese government dampens hopes of aggressive policy stimulus to fuel growth
  • Benchmark iron ore price for immediate delivery at the port of Tianjin in China slid 2.3 per cent to $US79.80 a tonne on Monday , the lowest price since September 17, 2009, following a 1.6 per cent fall to $US81.70 on Frida
  • The sharp falls came after a short-lived rally last week that led the commodity’s price higher to moret han $US85 a tonne.

Vale’s director of strategic planning Stephen Potter:

  • “Everyone is nervous about the iron ore price at the moment; are we shifting from heavy industrial (phase) to a consumer-led industrial (phase) in some classical economics professor’s views on development, and does that mean China is going to be using less iron ore? Well these are always the challengesfor a mining company to decide which commodities it needs to invest in”

Added – ungated here