Global Mining Industry: Iron ore rises 2% and helps Vale´s shares

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Mining Giant Truck transporting iron ore

Iron ore rose 1.9% yesterday and was trading at $96.50 per tonne in the spot market of China. It was the third high of the commodity which is being drawn by more positive data from Chinese industry. During the year, the ore has accumulated a decrease of 28%, but recovery comes in the last few weeks. Since the minimum in 2014 – and the last 21 months – from $89 per tonne on June 16th, the commodity records a high of 8%, or $7.5 per tonne.

The improvement quotation has helped the roles of Vale. Since Monday, the ore rose 3%, and the preferred shares of Vale has risen 5.43%. Yesterday, the shares climbed 2.13% to R$ 27.78, and ordinary advanced 1.97% to R$ 31.04. The Bovespa index rose 1.59%.

The Standard Bank analyst Melinda Moore said yesterday in a report that expects a rally in the short term, with the price returning to the level of $100 to $105 per tonne, which has not happened since the beginning of May. She states that a seasonal movement of destocking in June could lead to an improvement in prices in July and adds that the market for iron ore has shown a more positive performance than steel in China.

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