Vale’s (NYSE:VALE) CEO says the current drop in iron ore in China is “transitory” because the country’s economic fundamentals are solid, Bloomberg reported.
As quoted in the market news:
“Chinese steelmakers are working with lower levels of inventory now because the credit is not available as it was,” CEO Murilo Ferreira told reporters today in Brasilia. “But this is a transitory position.”
Iron ore futures for May delivery on the Dalian Commodity Exchange slid 1.6 percent to close at 847 yuan ($140) a ton today, the lowest since the contract’s Oct. 18 debut.