Vale minerals China co., LTD., President of long Ann (Joao Mendes Faria) said that vale may also further stripping assets of the ship. To cosco shipping, such as China merchants to sell a batch of very large ore carriers valemaxes, vale at present there are 4 hands only very large ore carriers valemaxes as their own. But for a long time, Ann said vale will no longer have Vlaemax soon.

 

The vale in dalian, tangshan caofeidian, Dong Gu port of Qingdao, yantai, Shanghai and zhoushan rat sea lake built six mixed ore center.

 

Vale offer significant debt reduction plans for the first time to the Chinese media confirmed the sale of iron ore assets.

 

"Before we have announced the sale of assets of about $5 billion to $7 billion in within the scope of the core business of iron ore potential asset sales is about 5 billion dollars, but the specific progress yet in the stage of commercial confidentiality." On November 4, vale minerals China co., LTD., President of long Ann (Joao Mendes Faria) said.

 

Due to scheduled to attend the vale chief executive for the overseas MuLi (Murillo Ferreira) accident cancel the trip to China, long on the day of the temporary "at" Ann had an interview with the 21st century business herald and other media. Almost at the same time a year ago and FeiMuLi casts a surprising prediction in the face of Chinese media for the first time, after a brief overcapacity adjustment, China's steel demand is expected to be in the six months to a year will pick up.

 

Proved his judgment - in China's steel industry this year, the first nine months of iron ore prices rose thirty percent, the demand for imported iron ore continues to grow, driven by the world's largest iron ore producer, performance is good. Has just released a week ago in the third quarter earnings, according to vale realized $3.023 billion in interest tax, depreciation and amortisation (EBITDA), while the influence of dam failure events continues, but profits and revenue were slightly better than expected.

 

In order to reducing debt levels to a reasonable interval, vale had put forward the plan to sell about $10 billion in assets, many Chinese companies are coming from object will be negotiation. Long 4 Ann didn't respond to a potential buyer's identity, but according to vale's goal is to cut debt to $15 billion to $17 billion, means that the need to reduce about sixty percent of the debt.

 

But when asked about the price of iron ore next year trend, Ann, fuzzy expression is given, vale has said more attention is how to further enhance its market share in China. In his view, with the steel industry transformation and upgrading, China's demand for efficiency and environmental protection, the requirement for the quality of iron ore will be more and more high, vale in which will be a big advantage.

 

To sell more assets debt digestion

 

This year, China's steel industry situation is much better than previously expected. By the end of October, 35 listed steel companies more than eighty percent of reported earnings, and last for more than six Angle in contrast to the enterprise loss.

 

"This year in September 1 to iron ore prices rose by 30%, this is not the market expected. Last year we forecast iron ore prices would fall by 5% this year, but it seems like the market situation is quite stable, economic operation is better than expected." Long AnJieShao.

 

In this background, the iron ore producers have increased iron ore production. After last year's record of nearly 350 million tons of iron ore output, in the first three quarters of this year vale and produced a total of 258 million tons of iron ore. Long 4 revealed that Ann S11D project by the end of the world's largest iron ore production project will be completed and put into production formally, the formal shipment next year, to 2020 reaches producing gradually, the total production capacity will reach 90 million tons.

 

From the results, vale's sales revenue nearly thirty percent in the third quarter from China. But for a long time, Ann said vale this year's financial performance not only attributed to the Chinese market and increase in iron ore, and asset sales and cost reduction.

 

Earlier this year, after a huge losses last year, vale has revealed plans to sell about $10 billion in assets, hoping to reduce the debt levels. Since then include merger of baosteel, wisco, and cic is news from the start negotiations with vale, but baosteel and wuhan announcement soon denied.

 

4, interview for the first time confirmed that the sale of iron ore assets is still in advance. Long Ann reporter to introduce to the 21st century economy, current vale to sell assets include coal, chemical fertilizer, energy, etc., some of them sell project has announced that so far the total assets of between $5 billion to $7 billion, while iron ore potential deals around the core assets in the range of $4 billion to $6 billion.

 

But he did not respond to participate in the bid for iron ore is there a Chinese buyers, said the temporary inconvenience said: "of course, the possibility of Chinese enterprises is very big, their money is really strong." Iron ore prices is relatively high at $65 a tonne, due to the price action than previously expected, vale's recent push the pace of iron ore assets transactions become more cautious.

 

Vale also may further stripping assets of the ship. To cosco shipping, such as China merchants to sell a batch of very large ore carriers valemaxes, vale at present there are 4 hands only very large ore carriers valemaxes as their own. But for a long time, Ann said vale will no longer have Vlaemax soon.

 

On the introduction of Ann, vale's current plan is to reduce debt levels to $15 billion to $17 billion. By the end of the third quarter, vale's net debt of $25.965 billion.

 

Under the new normal market advantage

 

For next year's iron ore prices, Ann did not explicitly given judgment: "although China's economy is expected this year and next year, but that doesn't mean iron ore performance."

 

In his view, the current vale, the main concern is not the price of iron ore, but focus on how to further reduce the cost, as far as possible in the Chinese market competitiveness. Because of the cost disadvantage caused by geographical location, compared to vale, Rio tinto, BHP billiton, Australia's competitors to the low number of market share in the Chinese market.

 

Long for the 21st century business herald reporters, vale from 2011 began to take a series of measures to reduce the cost of iron ore to China. Transit center in Malaysia was built on the basis of last year, vale and cosco, China set a long-term contract of shipping the shipowners, using the unit cost lower valemaxes transport, locking and further reduce the transportation cost.

 

In addition vale last year began in the center of the China's construction of a series of mixed ore, the mixed ore segment transplanted into China, so as to further reduce the time cost, at the same time to steel mills to provide new options. Long AnJieShao, at present the vale in dalian, China, tangshan caofeidian, Dong Gu port of Qingdao, yantai, Shanghai and zhoushan rat waves lake has six mixed ore center, the next step should be market demand may increase mixed ore in the port.

 

"The CVRD iron ore to China cost around $30, since 2012 we into the Chinese market sales rose by 50 million m tonnes of iron ore, this year an estimated 200 million tons of iron ore sales to China." Long for the 21st century business herald reporters. So far, vale in China's market share is about 15%.

 

As S11D project completed and put into production soon, CVRD iron ore production and in the future could be further reduced. Some manufacturers have begun to worry that the iron ore market will appear new surxzc.

 

Rio tinto chief executive Xia Jie thought had to 21st century business herald reporters that vale S11D and RoyHill two new capacity of more than 100 million tons, the market will exacerbate the situation of excess, is expected to seven to ten years to realize the balance between supply and demand again.

 

But long thinks that these forecasts are very conservative, "as well as to determine whether a market surxzc (in addition to production) we also want to notice more producers to leave the market due to the price, the rush hour there are more than 80 countries iron ore shipments to China, but has now been reduced to about 20 countries, and 2000 or so similar."

 

In the long run, China's iron ore demand growth will slow down gradually, but vale think it will be beneficial to expand its market share in China.

 

"In China's economic growth boom, all of the iron ore is considered to be good, because the demand. But China's economy under the new normal, transformation and upgrading of China's steel industry emerged, and a lot less demanding for iron ore quality of small steel mills have been turned off, large blast furnace steel mills might be more and more high quality requirements." Long said: "now we can see the two levels of competition, low grade ore is very competitive, but competition in the high grade iron ore, vale this level is almost the only manufacturer, so we are more optimistic about the prospects for the market in China."