Vale joins iron ore fray

Vale has weighed into an argument between China and the world's iron ore miners by dismissing claims companies are reducing export quotas in order to push up commodity prices.

Speaking at a conference in Hong Kong yesterday, Vale CEO Murilo Ferreira said iron ore producers were exporting record quantities.

 

“In the last quarter of 2012, we produced and sold more than we ever have before,” he said.

 

“The best answer we can give is to make sure we keep supplying more to the market.”

 

Ferreira also said while he thought the current mechanisms worked well, Vale was open to discussing alternative pricing systems.

 

The comments follow accusations from the Chinese Government that miners were restricting shipments in order to boost demand.

 

“The three major miners and some traders have delayed shipments and held back stocks to control supplies in order to send a fake market signal that there was a supply shortage,” China's National Development and Reform Commission said earlier this month.

 

China has also continued to complain about “unreasonable” pricing mechanisms, which it claims artificially boost commodity prices.

 

Vale has been joined by BHP Billiton and Fortescue Metals Group in claiming record iron ore shipments for the end of 2012.

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