Mr Mr Jose Carlos Martins executive director for Iron Products and Strategy of Vale said that the Brazilian mining company Vale is expecting supply and demand for iron ore to remain balanced this year and in the next.

Mr Martins said that “We are working with the hypothesis of balanced supply and demand, both of which should go up. Global output should not hike in such a way as to cause prices to lose sustainability. Iron ore prices have remained bearish since the year started, due to lower than expected demand from China. The supply of iron ore is going up in Australia and China, going down in India, and remaining level in Brazil.”

Mr Martins said that Vale’s output has been stable for some years now, but the company is bracing for a new growth spurt due to new operations due to begin and logistics investments. Although iron ore prices have been highly volatile in the past two to three years, they have always remained within a certain range. Currently, the ore sells for USD 135 per tonne and the executive believes the price is strongly sustainable at the USD 130 range. There may be some reduction, concerning the USD 135 price point.”