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Vale to Ramp Up Production Next Year

The world's largest iron-ore supplier, predicts that it will hike it its iron ore production to full capacity next year, fueled by the global economic recovery.
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NEW YORK (

TheStreet

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Vale

(VALE) - Get Report

, the world's largest iron-ore supplier, predicts that it will hike it its iron ore production to full capacity next year, fueled by the global economic recovery.

Vale's iron-ore production fell by about 30 million tonnes this year from about 302 million tonnes in 2008, but its CEO Roger Agnelli believes that next year its iron ore output will rebound to about 300 million tonnes,

Reuters

reported on Wednesday evening.

Last week, Agnelli said that greater demand from China may bump up metals prices next year,

Bloomberg

reported. Ahead of next year's price talks with the world's largest iron ore importer, Vale has signed independent ore contracts with Chinese steel mills for fixed freight charges, the state-run China Daily newspaper reported last Wednesday.

This year, China had failed to reach an agreement with suppliers in price talks after the China Iron & Steel Association insisted on a deeper price cut than

Rio Tinto

(RTP) - Get Report

and

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BHP Billiton

(BHP) - Get Report

had agreed with other Asian countries.

Industrial analysts are expecting iron ore prices to rise about 10 to 20% next year on increasing demand as the world's economy recovers.

U.S.-traded shares of Vale, Rio Tinto and BHP have made gains at Thursday's closing bell. Vale settled up 1.40% at $28.90 and Rio Tinto is closed higher at $215.20, up 1.6%. BHP closed up 0.9% at $75.90.

BHP has risen 0.9% to $75.90.

Cliff Natural Resources

(CLF) - Get Report

also settled higher, at $47.40, up 0.5%.

-- Reported by Andrea Tse in New York

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