- Iron ore giant Vale (VALE) doesn't feel threatened by China's need to overhaul its huge steel industry during coming years and sees potential opportunity in U.S. shale gas, director of ferrous metals and strategy Jose Carlos Martins says.
- China's steel industry has "near 200M tons of idle capacity [and] the first issue is to get rid of this capacity," Martins says at Vale's investor day; if that happens, prices for the ore Vale produces, which has particularly high levels of iron and therefore requires less coal to produce steel, could become "much better."
- Concerns about a wave of new iron ore supplies from Vale and Australian rivals such as Rio Tinto (RIO) are overblown, Martins says; Vale estimates that one-third of the new iron ore production capacity by 2020 will simply replace depleted mines.
- Earlier: Vale cuts capex budget to lowest since 2010.
Vale downplays threat from China's steel industry
Dec 2 2013, 17:58 ET