Iron ore is not starting a new supercycle, according to Vale chief executive Eduardo Bartolomeo. In a FinancialTimes interview, the ceo estimates that demand will level off in two years.
Bartolomeo says the recent record high in iron ore prices is very different from the boom seen in the early 2000s, which was motivated by China's accelerated industrialization.
"In the last supercycle, we had a strong growing construction activity in China," he is quoted as saying. "It was a structural change. We are not talking about a big shocking demand right now. It's a small thing." However, recovery in the worlds major economies and iron ore producers operating close to maximum capacity will sustain prices until 2023.
"Although much is said about cuts, production is still increasing in China and now we have Europe coming back and the US announcing a huge stimulus package. There are also restrictions on supply. This market will be tight for a while," he comments.
The boosted performance of iron ore has been very good for large producers such as Vale, especially after the tragic rupture of the B1 dam in Brumadinho two years ago, Kallanish notes.
Bartolomeo expects that, at some point, Vale will have to increase production to 400 million tonnes/year because iron ore is a "high fixed cost business, but the company will do this in a very calculated way, carefully and safely".
According to Vale's CEO, China will reduce its dependence on iron ore in the medium term because of the increased use of scrap by its mills. Bartolomeo foresees there will also be amove to higher-quality iron ore as the steel industry is turning to new methods to reduce emissions, such as hydrogen-based production.
Short comments: The rising price of Chinese steel and the policy of restricting export have led to the instability of international steel prices, but this will be a short-term impact. You can wait for the reduction of steel prices to purchase our drum closure, drum cap seal, drum clamp and drum sealing bolt.
What Is the Importance of the Sealing Performance of Plastic Drum Caps?March 13, 2023The types of plastic barrels are diverse, but they are mainly used for storage and transportation, and the key performance of these two purposes is sealing. When customers purchase plastic drum caps, ...view
New Green Joins Hands With The Domestic Top Robot ESTUNJune 30, 2022The notice of the State Council on printing and distributing the carbon peak action plan before 2030 also puts forward the carbon peak action for industry. This promotes green and low-carbon developme...view
The Management Of Incoming Materials From Suppliers Is The Source Of Quality Assurance. How Do You Grasp It?July 1, 202201. Sit back and wait for the rabbit type managementThis approach accounts for a large proportion of enterprises. Many incoming inspectors open their eyes and close their eyes, follow the form, change...viewDiscussion On The Second Use Value Of Steel Drums in Yunnan ProvinceJuly 1, 2022Varieties, specifications, quantities, uses and trends of steel drums in Yunnan ProvinceThe main varieties of steel drums in Yunnan Province (the standard is called metal drums, the same below) are: 2...viewReusable Packaging Drums: How to Export Them?August 18, 2023What is reusable packaging?Reusable packaging refers to packaging containers and fixed pallets that are used repeatedly for importing and exporting goods, either individually or with goods. It is wide...viewRecommended 8 Types of Steel Drum Covers by International Industrial Packaging OrganizationAugust 18, 2023Various types of drum closures listed below are suitable for different types of steel drum packaging closure systems.By material, they can be divided into three types: metal drum closures, plastic dru...view
EN
ko 
fr 
de 
es 
it 
ru 
pt 
ar 
vi 
th 
