Brazilian mining giant cheered by demand from China

RIO DE JANEIRO, Oct. 27 (Xinhua) -- Brazilian mining company Vale, the world's largest producer and exporter of iron, said Friday it was optimistic about product demand from China, its main market, and confident of Brazil's ability to export higher quality iron.

In a teleconference with journalists, Vale's management said it was certain internal factors would help boost China's economy and that, along with a lower supply of iron ore in China, will have a positive impact on the iron ore segment.

The effects of the Chinese economy are "on the positive side," said Vale CEO Eduardo Bartolomeo, who underscored the Chinese government's efforts to stimulate the country's economy.

Vale's executive vice president for Iron Ore Solutions, Marcello Spinelli, said the mining company has "a very optimistic view" of China "due to its recovery capacity."

"It is now clear that the Chinese government aims to, and is giving every indication that it will, maintain the target GDP and set GDP per capita," he said.

In addition to incentives, Vale executives see a move to transform the Chinese manufacturing industry, spurred by decarbonization.

According to Spinelli, products that need to decarbonize will require the purchase of high-quality ore, which has higher prices, as "stronger demand" is being seen with the emergence of "a new platform of factories" that need this type of steel.