"Iron ore demand fell to a three-year low at the start of this month. Now the expected resumption of steel output in December is affecting market sentiment and changing the market trend," according to Mysteel.
Prices on the Singapore Exchange surged as much as 9.6% to $105.50/ton, and iron ore on the Dalian commodity exchange rose 6.8%.
Vale has solid profitability and value indicators, but the Chinese downsizing of steel production has weighed on iron ore prices, limiting Vale's upside potential for the time being, Toni Nasr writes in an analysis posted on Seeking Alpha.