Iron ore is not starting a new supercycle, according to Vale chief executive Eduardo Bartolomeo. In a FinancialTimes interview, the ceo estimates that demand will level off in two years.
Bartolomeo says the recent record high in iron ore prices is very different from the boom seen in the early 2000s, which was motivated by China's accelerated industrialization.
"In the last supercycle, we had a strong growing construction activity in China," he is quoted as saying. "It was a structural change. We are not talking about a big shocking demand right now. It's a small thing." However, recovery in the worlds major economies and iron ore producers operating close to maximum capacity will sustain prices until 2023.
"Although much is said about cuts, production is still increasing in China and now we have Europe coming back and the US announcing a huge stimulus package. There are also restrictions on supply. This market will be tight for a while," he comments.
The boosted performance of iron ore has been very good for large producers such as Vale, especially after the tragic rupture of the B1 dam in Brumadinho two years ago, Kallanish notes.
Bartolomeo expects that, at some point, Vale will have to increase production to 400 million tonnes/year because iron ore is a "high fixed cost business, but the company will do this in a very calculated way, carefully and safely".
According to Vale's CEO, China will reduce its dependence on iron ore in the medium term because of the increased use of scrap by its mills. Bartolomeo foresees there will also be amove to higher-quality iron ore as the steel industry is turning to new methods to reduce emissions, such as hydrogen-based production.
Short comments: The rising price of Chinese steel and the policy of restricting export have led to the instability of international steel prices, but this will be a short-term impact. You can wait for the reduction of steel prices to purchase our drum closure, drum cap seal, drum clamp and drum sealing bolt.
Tutorial: Type Of Metal Packing Steel Drum ClosureJuly 1, 2022The top of the steel barrel should be set according to the type of opening, the mouth of the barrel or called the seal, the purpose is easy to open, easy to use, and to ensure that the contents do not...view
Why Do Molds Cause Leakage Of Drum Closure?July 1, 2022Barrel top punching drawing diePunching drawing die is a set of composite film. After punching and stretching, due to the improper shape and size of the top hole of the barrel, the locking quality of ...view
The Difference Between Trivalent Chromium Galvanizing (CR3+) And Hexavalent Chromium Galvanizing (CR6+).July 1, 20221. The difference between toxicity and pollution levelsTrivalent: the price of trivalent chromium is higher, but the toxicity is low, only 1% of hexavalent chromium and the passivation effect is also ...view
How Circulation Processes Influences Packaging QualityJuly 1, 2022The quality of packaging not only depends on the production of packaging containers, but also will be directly affected in the circulation process of use, protection, handling and storage. These facto...viewCauses And Countermeasures Of Concave Deformation Of Steel Drum Body In Production ProcessJuly 1, 2022First, the material physical and mechanical properties of steel drums are reduced after thinning, which is easy to cause the dents after the drums are knocked.The thinning of the steel drum makes the ...view
Drum Liners for Steel DrumsApril 27, 2023Drum liners are an essential component for many industrial applications that require the transportation or storage of liquid or powdered materials. When it comes to steel drums, drum liners are partic...view
EN
ko 
fr 
de 
es 
it 
ru 
pt 
ar 
vi 
th 
