Vale CEO says China iron ore price drop temporary

|About: Vale S.A. (VALE)|By:, SA News Editor

A recent decline in iron ore prices in China is temporary and prices should rebound after companies operating there begin rebuilding inventories, Vale (VALE) Murilo Ferreira says.

Tighter credit conditions in China hit the steel sector and the companies continue working with low inventories, Ferreira says while believing the fundamentals of the Chinese economy remain "solid."

The CEO also says Vale is focused on its $19.5B investment in the S11D iron ore project in Brazil's Para state and its $6.5B Nacala port and railway project in Mozambique.