Vale SA, the world’s largest iron ore mining company, lost money last quarter on falling iron ore prices, but MetalMiner’s index shows upward iron ore price movement.
Chinese steel and raw materials prices closed mostly flat for the day. But the high price of iron ore 58% fines from India hit ticked up slightly higher over yesterday.
According to Reuters, the USD/real exchange rate and fuel subsidies are helping Vale SA out: “With the real worth 5.31 percent less in the second quarter of 2013 compared with the second quarter of 2012, each dollar of iron ore sales bought 5.61 percent more Brazilian goods and services than a year earlier.”
“Vale, Brazil’s largest consumer of diesel fuel, also benefited from fuel subsidies that the government forces Petroleo Brasileiro SA, or Petrobras , Brazil’s state-controlled oil company, to give Brazilian consumers. While the government has allowed several fuel price increases in the past year, local prices have never reached world levels, and the price hikes have been wiped out by the stronger dollar, helping Vale control its rail network costs,” according to Reuters.
Today’s Steel Prices
Chinese HRC saw little change in its price. The price of Chinese coking coal also held steady.
The cash price of steel billet fell 8.0 percent on Monday, August 5 to $115.00 per metric ton on the LME, making it the day’s biggest mover. The steel billet 3-month price moved on Monday. After a few changeless days, prices dropped 6.5 percent to $145.00 per metric ton.
The 3-month price of the US HRC futures contract moved up 1.8 percent, landing at $616.00 per short ton. The US HRC futures contract spot price increased 0.8 percent to $642.00 per short ton.