Vale Sees Quarterly Losses Double After Tax Payment

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Vale SA was stuck with quite the bill.  The company “said on Wednesday its net loss more than doubled in the fourth quarter after it took a $6.5 billion charge for an income-tax settlement with the Brazilian government and wrote off part of a failed potash investment,” reports Reuters.

“Vale lost $6.45 billion in the three months ended Dec. 31 compared with a loss of $2.62 billion in the fourth quarter of 2012. The loss was well above the $3.83 billion average loss forecast of seven analysts in a Reuters poll and its worst quarterly since at least 1997 when Brazil’s government sold the company to private investors.”

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“Vale’s full-year profit was $584 million in 2013, the worst annual result in more than a decade.”

“While the tax settlement resulted in one of the company’s worst ever losses, Vale continues to dispute the payments, which it considers double taxation of its overseas operations. By making the payment in November it was able to cut its potential liability in half. If a protest against the charges prevails in Brazil’s Supreme Court, the company has said it expects a rebate.”

In metal price news for steel…
Chinese steel prices were flat for the week. The price of iron ore 58% fines from India was range bound. Chinese HRC remained essentially flat from the previous week. The price of Chinese coking coal did not change since the previous week. Prices for Chinese slab remained constant.

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Following a steady week, prices for on the LME the steel billet 3-month price closed flat at $360.00 per metric ton. The steel billet cash price stayed essentially flat on the LME at $355.00 per metric ton.

Korean steel prices were flat for the week. Korean steel scrap traded sideways last week. The week finished with no movement for Korean pig iron.

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