Vale CFO Sees No Downturn in Iron Ore Prices

Summary

Vale CFO Marcelo Bacci argues iron ore remains resilient and does not expect a downturn, with China's demand stable as infrastructure, industrial output and exports offset property weakness. He also highlights stronger copper demand growth and Vale's plan to double copper production over the next decade. The company may tap China's bond market with a panda bond as soon as 2026, while the Vale Base Metals IPO is not a near-term priority.

• Vale CFO sees no iron ore downturn and calls the commodity resilient.
• China's iron ore demand is stable or growing as infrastructure and exports offset property weakness.
• Iron ore prices have been stable around $90-$105, with current prices near $99.
• Longer term, decarbonization may favor higher-grade iron ore products.
• Copper demand growth is stronger due to electrification and technology infrastructure.
• Vale aims to double copper production over ten years via organic growth.
• Vale may issue $400-500 million in China panda bonds, possibly in 2026.
• The Vale Base Metals IPO is not a priority for the next one to two years.