Vale Expands Production in China Hope

The unsurpassed leader among buyers of iron ore - China will be able to purchase all the surplus of this raw material that has formed on the sales market. Despite a significant slowdown in economic growth, the demand for ferrous metallurgy products in Asia has not changed. Claudio Alves, head of marketing and global sales at the Brazilian mining company Vale, did not deny the consensus.

According to him, by 2015 the amount of imported iron ore in China will reach 900 million tons. At the same time, plans have already been announced for the purchase of additional supplies from mining suppliers of the world, approximately 80 million tons next year.

"This level of imports of iron ore may remain at the same level for the next ten years," said Alves. "Until the PRC reaches the peak of urbanization."

But China is not going to stop at these records. Therefore, the productivity of companies whose main product is carbon steel, according to experts, will increase to 820 million tons this year. For comparison, in 2013 this figure did not exceed 779 million tons.

In addition, Alves noted that by the end of the winter quarter, the cost of a ton of iron ore will be $ 100. Vale itself plans to increase the productivity of ore mining by 2018 to the level of 450 million tons. At the end of last year, this figure was 350 million tons. In addition, Vale seeks to reduce average production costs from $ 22 per ton to 18, by expanding the capacity of mines. At the same time, if the PRC authorities approve the permission of Valemax to visit seaports, the company will also reduce the cost of transporting products to China by $ 6 per ton of raw materials.