Vale: Asian demand will boost iron ore sales growth in 2012

Tito Martins, Brazil's mining giant Vale's chief financial officer, said that due to strong demand for raw materials in Asia, sales of iron ore and pellets in 2012 may increase by 4.3%, from 299 million tons last year to 312 million tons.

Martins said that due to strong demand from Asia, especially China, and tight supply, iron ore prices will not fall sharply in 2012. Demand for iron ore will also be stronger than last year. Sales to China in 2011 accounted for 32% of company revenue in 2011 and it is expected that this year will continue to increase its market share in China.

870,000 tons, accounting for 65% of the global seaborne trade. China and other Asian countries will become our main market. Due to the internal uncertainty of the European debt crisis and the slowdown in real estate investment, the Chinese economy is facing the risk of a weak export market. However, domestic consumption in China will help support the economic development without a hard landing.

He also said: "We believe that some of China's ports will soon allow large ore carriers to stop." But he did not give a specific timetable. Prior to the lifting of restrictions on large ore carriers in Chinese ports, the company is developing new options for the processing of iron ore shipments to China, including the construction of an iron ore trans-shipment center in Subic Bay, Philippines, to move iron ore from large ore carriers. Reject to slightly smaller ships and ship them to China and other Asian countries. The company is also building an iron ore distribution center in Perak, Malaysia, which is expected to be put into operation in 2014.

Vale achieved good results in 2011 with operating income of 60.389 billion U.S. dollars, up 29.9% year-on-year; net profit of 22.848 billion U.S. dollars, up 32.6% year-on-year; fourth-quarter net profit of 4.672 billion U.S. dollars, down 21% year-on-year, and declining from the previous month. 5.3%.