Vale SA (SAO:Vale5) (NYSE:VALE) had earnings in the first quarter increase by 18 percent as demand for iron ore surged from steelmakers.
Revenue for the quarter grew from $5.42 billion last year to $6.85 billion in this quarter, while profits rose to $1.6 billion, or 30 cents a share, from $1.36 billion, or 26 cents a share the same quarter last year.
The gains are directly related to increasing iron ore demand and the inability to supply all of it in the world, which allows for higher prices and better profits.
Most demand is coming from China, and iron ore needs will grow at an estimated 10 percent there in 2010. Approximately 57 percent of iron ore and pellet shipments of Vale go to China.
Vale's major competitors are Rio Tinto Group (ASX:RIO) (LON:RIO) and BHP Billiton Ltd. (ASX:BHP) (NYSE:BHP).
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