Vale Iron Ore Prices
I don't think there's any doubt Vale (NYSE: VALE) is positioned and poised for an extraordinary upwards run in its share price, as their 80 percent exposure to iron ore has them ready to partake in the increasing demand for iron ore, from which steel is made.
Probably the best example of this was the recent attempt by China to dampen down the price of iron ore in the market, which they failed to do because domestic Chinese companies had such a high demand for it that they were willing to pay the asking price even as the Chinese government attempting to pressure the major three iron ore producing companies - including Vale - to drop the price.
China attempted this last year and it backfired on them as the spot price was higher than the negotiated prices other companies paid for a contract for iron ore.
Anyway, Vale should have a nice, long run going up as the demand for iron ore should outstrip the supply for some time to come. Of course any of the major three iron ore producing companies should participate in that upward run, it's just that Vale's 80 percent exposure puts them in an enviable position.
Vale Iron Ore Prices
1 comment:
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