- "We are going to be responsible and we are not going to overflow the markets with iron ore," Vale (NYSE:VALE) CFO Luciano Siani said today at the Reuters Commodity Trading Summit.
- Vale is prepared to raise its capacity using safer and less polluting methods to 450M metric tons in about five years - nearly 50% more than forecast production for 2020 - but it may not use full capacity if an expected surge in Asian demand fails to materialize, Siani said.
- As the only global iron ore miner with significant plans to expand capacity, Vale's production decisions affect prices of products made of steel around the world.
- A reduction in world supply after Vale cut ~25% from its production target for 2019 following the January tailings dam disaster at Brumadinho helped to fuel a surge in iron ore prices, which hit a six-year high this September.