Vale Chief Executive Officer Murillo Ferreira said in Shanghai that the company’s growth would go regardless of how the market shifts. In terms of expanding its iron ore operations, Vale already has capital expenditures authorized by the board of directors amounting to $35 billion. These expenditures include a variety of growth projects, such as serrasul and carajas, among others. If all goes according to plan, Vale’s annual iron ore production would surpass 450 million tons in the year 2016, when these projects are scheduled to be finished. In the previous five or six years, Vale did not like it when its rivals in Australia aggressively expanded; yet, the management of the firm does not seem to be concerned about the market share being reduced as a result of this. Joseph Carlos Martins, executive director of iron ore and strategy, said expansion despite the fact that we are making up lost ground and the market is showing no signs of slowing down, the capacity is still rather huge. Even if a decrease in price is not a concern for us, our growth will focus on high-grade iron ore with low production costs. In the discussion of the supply and demand for iron ore on the market, mine depletion issues are often disregarded, as was pointed out by murillo ferreira. In the last ten years, a significant number of mines have reached full production, which has led to a decline in resource availability and an inconsistency in product quality. Therefore, successful providers must adapt in order to compete in the market, which controls everything. However, as an important means to solve the problem of long-distance transport, the outlook of valmax ship berthing in china is still unknown at this time. The only way to compete with the geographical advantages that the Australian competitors have is to work extremely hard, lower costs, and provide products of the highest possible quality. Even if its cost savings, energy consumption, and environmental elements are all positive, valemax can wait, according to murillo ferreira. With due respect to china’s government agencies, vale believes that it should take some time to fully comprehend the advantages of valemax. The valemax freighter, which has a cargo capacity of between 380,000 and 400,000 tons, is by far the biggest ship ever constructed in the world. When murillo ferreira was asked about the plans of the Chinese government to reduce the capacity of steel production by 80 million tons, he responded that he believed the Chinese government has always been more cautious when taking various measures, especially with regard to the issue of overcapacity. At the moment, the Chinese government is continuing to place its primary emphasis on resolving the issue of local government debt, in addition to addressing the ways in which certain economic policies implemented in the past have brought about the present state of the economy. This year marks the first time in exactly 40 years that Vale has supplied iron ore to China. In the meantime, Vale has sold a total of 1.1 billion tons of iron ore to China. In recent years, China’s consumer market has almost reached half of the total. The next step in the strategy is to complete the shipments for the last 40 years in the past six years. Vale’s major business section consists of iron ore, nickel, copper, fertilizer, metallurgical coal, and $6.4 billion worth of capital expenditures in metallurgical coal alone. Vale’s primary business is iron ore, but the important business segment also contains nickel and copper. If you are looking for a provider of high-quality carbon steel pipe, tinplate, or steel wire in China, go no further than ontrend industrial limited. If you have any questions, feel free to contact us via our website.
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