China's trade surplus hit a new record high of $49.8 billion in August to beat analysts' expectations of $40 billion. Bank of America/Merrill Lynch (BAC) analysts cited the decline in global price of iron ore, which fell 36% year-over-year in August.
Last week, iron ore with 62% content dropped 1.7% to $83.80 a ton, the lowest price since September 2009.
Vale stock has fallen approximately 10% since mid-August.
Separately, TheStreet Ratings team rates VALE SA as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate VALE SA (VALE) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows: