Reportedly, the world’s largest iron ore producer, Vale, is planning to expand the iron ore capacity for 2011 in order to meet strong demand.
The company will invest US$260 billion to develop 18 new projects in next two years. Furthermore, they set African and Asian market as the priority.
Vale predicted that the demand for iron ore would recover from the end of 2009 to the beginning of 2010; thus, the prices would be at USD130~USD150/ton.
Meanwhile, China’s restriction policy of power and production and the axe of joint venture with BHP Billiton seem not to bring any serious influence to Vale’s export market.
According to the latest data, the output of Vale’s iron ore in Q3 was 82.61 million tons which has reached the highest level of 2008; the total output in the nine months of 2010 was 227 million tons, increased by 30.4% compared to the same period of last year. The company estimate to raise it to 450 million tons in 2014.
Source: www.Yieh.com