Brazil's Vale sees China's iron ore needs better in 2012

The Chinese demand for iron ore is expected to improve in coming months, said Monday Murilo Ferreira, the company's CEO, in the Vale Day at the New York Stock Exchange Nyse. "The demand in China is much more related with macroprudential measures and three hikes in interest rates than with the international picture," said an optimistic Ferreira. China is the main importer of China's iron ore. This fourth quarter and the coming Jan-Mar period will be challenging in China. After that, however, the country should keep growing at a 9% pace, Ferreira estimated. In the words of director for Marketing, Sales and Strategy, José Carlos Martins, China faces a conjuncture crisis, not a structural one. "Vale has not had problems in China. The situation is completely different from 2008." The company's CFO Tito Martins admitted that Vale will certainly issue bonds both in the domestic and foreign markets next year, depending on more stable market conditions. Domestically, Vale is concerned about the reduction of its market share as a supplier of the steel sector. In 2005, Vale used to sell 70% of iron ore for Brazilian steelmakers. In 2011, the company had a 50% share and estimates a 29% share in 2014. "We are not happy about it," said the executive.