Iron ore prices slump, but J.P. Morgan still bullish on Vale

Iron ore fell to $103.7/ton yesterday, the lowest since Sept. 2012, and Goldman Sachs believes $100/ton will become the new norm by year's end because of oversupply, seeing the global surplus jumping from 14M tons last year to 77M tons this year and 145M tons in 2015.

But J.P. Morgan remains bullish on shares of Vale (VALE -0.4%), even as it lowers its target price to $19 from $22.50, seeing "no cause for concern for Vale’s investment case, as the prices do appear to follow the spot price trend over multiple quarters, removing the Q/Q volatility.”

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