Market Chatter: Vale Says Higher Costs Make 10% of Seaborne Iron Ore Supply Unprofitable

MT Newswires Live10-16 18:40

Vale S.A (VALE) Chief Executive Officer Gustavo Pimenta said rising energy and freight costs due to the conflict in the Middle East have made about 10% of the global seaborne iron ore supply unprofitable, Bloomberg reported Friday, citing an interview with the executive.

The unprofitable supply totals about 160 million tons, of which roughly 15 million tons have already been taken offline because of higher costs, the report said.

Pimenta said iron ore prices should recover as higher operating costs discourage marginal producers from maintaining output.

The Vale exec sees the market to remain balanced and demand from China and other significant markets to remain strong, according to Bloomberg.

Vale did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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