Vale will increase its iron ore transportation to China in 2020
On the afternoon of June 1, Wang Yingsheng, Deputy Secretary General of CISA, held a conference call with Melis, global iron ore sales director of Vale group, a Brazilian miner, to discuss the current production and operation situation of vale and relevant measures to deal with the epidemic. Vale said it plans to increase its iron ore production and transportation to China in 2020.
China's steel production remains strong as the rest of the world cuts production to cope with weak demand. On May 29, iron ore inventories at Chinese ports fell to 109.5 million tons, the lowest since November 2016, according to steel house.
The China novel coronavirus pneumonia import volume is expected to increase in 2020, but the growth rate is expected to drop to 6% from 19% before the outbreak of the new crown pneumonia, according to the United Nations Conference on Trade and development.
Brazil's supply was blocked and China's demand picked up, supporting the rise in iron ore prices. As of May 31, the spot price of 62% grade iron ore was US $102.5/ton, a new high in nearly 10 months.
Vale said its production and operations have not been affected by the outbreak this year, and its annual production target remains unchanged.
