Vale bullish on metal prices, seeks to accelerate copper projects
RIO DE JANEIRO - Executives at Brazil's Vale, the world's second largest iron-ore producer, said premiums for the commodity were at a "unique moment" and that they were also confident regarding the trajectory of copper in 2021.
In a conference call with analysts to discuss the company's 2020 financial results, executives attributed high iron ore prices to factors including a ban by China on Australian coking coal. Coking coal, like iron-ore, is a vital ingredient in steelmaking.
"The fact is that there are some extraordinary points here. The first of them is the extremely high coke prices in China," Marcello Spinelli, Vale's head of ferrous metals, said.
"Winter logistics are also playing a role, but a very large effect in any case is the Chinese strategy with respect to Australian coal."
Iron ore prices reached a record in December on China's Dalian Commodity Exchange.
Copper prices have this week surged to their highest in almost a decade, although they were falling on Friday.
The executives still saw significant upside, saying Vale has not contracted any hedges for the metal.
"We have a very bullish outlook on copper," CFO Luciano Siani said, when asked about a potential hedge. "We haven't even thought about it."
The company has, however, hedged a portion of its nickel production, Siani said, while adding that the company was confident "in the strength of the nickel market".
Vale reported earnings late on Thursday that were heavily affected by payouts related to the 2019 Brumadinho dam disaster. Margins, when stripped of those charges, were slightly above Refinitiv estimates.
The company's Brazil-listed common shares were down 0.5% in afternoon trade, above Brazil's benchmark Bovespa equities index , which had fallen 1.1%.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Supplier & Distributor of the Widest Range of Accurate & Easy-to-Use Alcohol Breathalysers
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
