Bloomberg reported that Vale SA expects tightness for the steelmaking raw material to persist for as many as four years because of rising demand and a limited number of new projects.
Mr Guilherme Cavalcanti CFO of Vale said that the economic recovery is boosting demand for steel, while tight supply is driving up ore prices. The market will be constrained for three to four years.
Mr Jonathan Brandt, an equity analyst at HSBC Holdings Plc in New York, said that "Vale will continue to post impressive financial figures as commodity prices, particularly for iron ore, have risen dramatically. The company should have a robust year as it brings on additional capacity through new projects."
( Source: www.steelguru.com )