NEW YORK (TheStreet) -- Shares of Vale SA (VALE) are lower by 0.97% to $6.61 in midday trading Tuesday, as the slump in iron ore drags down the world's largest producer of the steel-making ingredient.
In addition to oil, the decline in iron ore prices, which account for about a fourth of the gauge, are also weighing down on the Bovespa index, according to Bloomberg.
Iron ore fell 3.5% to $58.53 a ton, according to a price index compiled by Metal Bulletin.
Additionally, Brazil struggles with its slowing economy amid the fastest inflation in more than a decade, Bloomberg reports.
Also BHP Billiton's (BHP) South32 spin-off of some of its mining assets was valued at the lower end of expectations, at $9.1 billion on Monday. BHP's core portfolio includes crude oil, iron ore and copper.
Vale is a Brazil-based metals and mining company with service in four segments including bulk material, basic metals, fertilizers, and logistic services.
Separately, TheStreet Ratings team rates VALE SA as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate VALE SA (VALE) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself."