Vale tumbles, more dependent than other miners by weak iron ore prices

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

Vale (VALE -1.7%) is sharply lower after a key batch of Chinese economic data for July showed some slowing growth; Vale is more dependent on iron ore prices staying high than Rio Tinto or (RIO -1.6%) BHP Billiton (BHP -0.6%).

Cowen reiterates its Market Perform rating and $16 price target on Vale, saying that while there’s much focus on the cost for Vale to expand its mines, investors may be ignoring the value of some new projects.

Over the longer-term, investor sentiment could begin to shift as continued strength in iron ore results from higher volumes and improved product mix as well as improving non-ferrous, Cowen says.