SAO PAULO – China’s stock market crash and currency devaluation have not dampened the optimism of mining giant Vale’s chief executive, who said he is most upbeat on the iron ore market in two years, according to a newspaper interview published Friday.
China’s stock markets have little relation to its real economy and a new foreign exchange policy has been misinterpreted as stimulus for exports, Vale CEO Murilo Ferreira told newspaper Valor Economico.
“The outlook for iron ore in recent weeks is much better than we saw four months ago. Of the last 24 months, I’m most upbeat right now,” said Ferreira.
The sharp Chinese sell-off in recent weeks rattled global markets, but Ferreira played down those fears and said the devaluation of the yuan was a step toward making the currency convertible.
He said he recognized it would be hard for iron ore prices to return to $100 per tonne, but that the lower prices were pushing several miners out of the market, which tends to mean more market share for big, efficient miners such as Vale .IO62-CNI=SI.
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