Vale chief executive says iron ore prices should rise amid squeezing margins
Vale CEO Gustavo Pimenta stated iron ore prices should rise as surging costs make 10% of global supply unprofitable amid Singapore futures falling below $90 per ton.
Vale Chief Executive Officer Gustavo Pimenta has stated that global iron ore prices should be "a little higher" to account for mounting operational expenses. Speaking in an interview, Pimenta highlighted that escalating energy and transportation expenses have rendered approximately 10% of global seaborne supply unviable financially.
The executive's comments follow a decline in Singapore iron ore futures, which fell below $90 per ton this week—marking a two-year low and bringing total losses for 2026 to around 15%. During the discussion, Pimenta also addressed market conditions in China, rising production costs, and potential ramifications for Brazil's mining industry depending on the outcome of the country's upcoming presidential election.
Sources: Bloomberg.