The rise in the price of iron ore, that has more than doubled in just over a year, has helped pulling the sector’s performance in Brazil, especially in what concerns Vale, one of the world’s largest iron ore producers and exporters.
Iron ore prices, which in January of 2016 were at $ 41 a dry ton, reached US $ 92.20 on Monday (13), a rise of 55%. The surge was consequence of increasing demand for steel in China. According to Metal Bulletin, iron ore for delivery to China’s Qingdao port jumped $US5.61 to $US92.23 a tonne, the highest price since August 2014.
Vale stock gained 8% on Monday not only due to the good news on iron ore prices, as well as to the possibility that its CEO Murilo Ferreira will be elected for another two years to lead the company. Investors have been worried that Mr. Ferreira could be substituted by a political appointee.