Vale CEO: Global metal demand has not been disrupted by war

Golden Ten Data reported on June 9 that Gustavo Pimenta, CEO of the world’s largest iron ore producer Vale, stated that there are currently no signs of war disrupting global metals market demand. Instead, after the Iran conflict disrupted raw material transportation, the company's profit margins actually expanded. Pimenta said that Vale is focused on unlocking the value of its own assets rather than seeking acquisition opportunities. He added that global demand for key minerals has always been “highly constructive” for the company. The disruption in the Strait of Hormuz transportation raised fuel prices and shipping rates, impacting miners such as Vale. However, price increases and sales growth offset these effects. Vale has raised its full-year free cash flow forecast for its core iron ore business by 1.5 billion US dollars to reflect the positive impact of rising iron ore prices since the outbreak of the Iran war. Vale now expects the average iron ore price this year to reach 112 US dollars per ton, higher than the pre-conflict forecast of 102 US dollars per ton.