Seeking Alpha

China regulations limiting vessel size at ports deals a blow to Vale

  • New regulations from China's Ministry of Transport issued this week could threaten Vale's (VALE) plans to use supersize ships to serve China, WSJ reports.
  • The rules limit the size of vessels that can call at Chinese ports to those carrying loads of 250K deadweight tons or less; that's a problem Vale, which has led a multibillion-dollar investment program to build a fleet of giant Valemax carriers capable of loading 400K dwt of cargo.
  • The huge cargo vessels were designed to allay the higher distribution costs and longer delivery times Vale faces compared with rival mining companies in Australia who are geographically closer to China.
Comments (9)
  • paruig
    , contributor
    Comments (8) | Send Message
     
    What impact will this have on CLF?
    14 Feb, 09:17 AM Reply Like
  • 2839298249
    , contributor
    Comments (225) | Send Message
     
    None.
    14 Feb, 09:19 AM Reply Like
  • alrightalready
    , contributor
    Comments (81) | Send Message
     
    NONE is correct.

     

    VALE has a Chinese partner and it partnered exactly for this reason.

     

    I "really like" the use of the word "could" as you highlight the word "threaten."

     

    What kind low-life advertising is this "Credit Suisse?" You know this.

     

    Credit Suisse: Has CLF hit $10 hit?
    14 Feb, 09:27 AM Reply Like
  • alrightalready
    , contributor
    Comments (81) | Send Message
     
    One more thing Credit Suisse.

     

    Are you shilling for some one or group trying to purchase VALE at a lower price with such misleading headlines? That headline followed by the use of the word "could" is an outrage.
    14 Feb, 09:31 AM Reply Like
  • Berliner
    , contributor
    Comments (31) | Send Message
     
    alrightalready has it right. In the end, the 'Partnership' with VALE will overrun any concerns
    about the local Chinese shippers....China wants 'Natural Resources Security'...and although
    a thousand years is a 'New York Minute' to the Chinese, they'd like to get that 'Security' sooner than later...expect a 'Rules Change'.
    14 Feb, 11:19 AM Reply Like
  • Berliner
    , contributor
    Comments (31) | Send Message
     
    China wants 'Natural Resources Security'..it's not about to let anyone, foreign or domestic get in the way of the 'Partnership' with VALE. Expect a 'Rules Change'.
    14 Feb, 11:19 AM Reply Like
  • Yueping Guo
    , contributor
    Comments (46) | Send Message
     
    The regulation has been in place for some time - I don't know why it is brought up as news now.

     

    Also, VALE has solved this issue by contacting a Chinese company to operate the Valemax. I talked about this is in "http://seekingalpha.co...".
    14 Feb, 04:35 PM Reply Like
  • Minusprevious
    , contributor
    Comments (2) | Send Message
     
    I was concerned when I read the headline report. Great that I spotted your comment & re-read your article. Thanks !
    15 Feb, 06:05 AM Reply Like
  • Bigdog3004
    , contributor
    Comments (17) | Send Message
     
    Vale has been a loser for a long time. Time for a rebound Several "so called" experts expect it to hit 19. I hope they are right for my self interest. Long Vale.
    15 Feb, 05:59 AM Reply Like
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