Iron ore price remains above $ 60 per ton

The world price for iron ore should not fall below $ 60 per tonne, Brazilian Secretary General Vale Fabio Schwarzman said. The chief executive addressed the Brazilian Investment Forum in Sao Paulo.

This is the estimated “baseline” for the product during 2018. This happens when the iron ore market changes, fueled by increased interest in high quality iron ore in China and the depletion of many Australian and Chinese mines.

“We will have good predictability in iron ore prices. Thus, in any price scenario, the market can easily predict Vale's performance, ”added Schwartzman. “After Vale completed its largest project with the S11D, high quality iron ore could be sold at a premium to the international market and to the benefit,” the CEO continued.

The chief executive also confirmed that Vale is focused on optimizing its cost structure, but may soon announce new investments in Brazil. Vale's actions in Brazil have suffered "... limited impact" on the truck drivers strike, Schwartzman said, but the impact on the company could worsen if the protests continue.

“If the strike continues for a few more days, it is inevitable that the output will be reduced as a result of the lack of materials required for our production,” said the CEO of Vale.