Proactive Investors quoted Vale as saying that while the demand for iron ore outside of China remains extremely weak.
In the world outside of China, Vale said that the demand for iron ore remains extremely weak, with Japan, the world''s second importer, reducing its purchases by 24.4% YoY in 1Q09.”
The company said that "Besides discontinuing the production of lower grade iron ore production, Vale has speeded up the implementation of its new marketing policy strategy. Our iron ore output is under a structural shift with the onset of a trend towards a rising share of the low cost high quality Carajas ores, boosting our competitiveness in the global arena. The increasing supply of low quality ore by competitors should help Vale to maximize the capture of the value in use of its high quality ores, sold at a price premium over the other products."
Vale explained that "We are enlarging our customer base in China, entering into contracts with midsized steelmakers, which is facilitated by the use of our ships to carry iron ore."
It said that "We have been adopting a more flexible stance to iron ore pricing, employing different options in our markets efforts, including provisional pricing. As a matter of fact, moving forward iron ore products will be price according to a variety of alternatives, ultimately reflecting the preference of our clients."