It was only a couple of months ago that Vale was talking up iron ore prices out to 2015 and beyond, and analysts were saying the discount being applied to company shares on expectations of a glut were too steep.
Moreover, Marius Kloppers and Tom Albanese were both cautioning that building up the planned new capacity that might take longer than expected.
But now, that might not be such a problem. From the FT:
“It is noticeable that markets are somewhat weaker,” said Rio Tinto chief executive Tom Albanese in an interview. “In a few cases, customers are asking to reschedule deliveries. “This is consistent with customers being cautious about the current state of business.”
Coincidentally, we note how Rio and BHP’s shares have changed, relative to the FTSE 100, since early August:
Rio is more heavily weighted towards iron ore, in case you’re wondering.
Related links:
Rio Tinto warns of slowdown in demand - FT
Iron ore set to stay ‘stronger for longer’ - FT