Mercado em alerta, minério de ferro evapora na bolsa: China impacta nas ações da mineradora Vale e siderúrgicas brasileiras

Market on Alert, Iron Ore Evaporates on Exchange: China Impacts Shares of Mining Company Vale and Brazilian Steelmakers

Written by Flavia Marinho

Published on 13/11/2024 at 18:22

China decepciona o mercado, e minério de ferro despenca! Ações da Vale e siderúrgicas caem com baixa na Bolsa de Cingapura e impacto é devastador

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China Disappoints The Market, And Iron Ore Plummets! Vale Stocks And Steel Companies Drop As Singapore Exchange Declines And Impact Is Devastating

The iron ore market suffers a strong impact following a decline in investor expectations regarding China. Last Friday, the December iron ore contract on the Singapore Exchange fell by 2.16%, reaching US$ 103.25 per ton. This movement directly affected the shares of Brazilian mining and steel companies, including Vale and steel sector companies.

Investors were eagerly awaiting bolder economic measures from China. It was expected that the country’s main legislative body, the Permanent Committee of the National People’s Congress, would approve significant actions to stimulate the economy, especially to address potential trade tensions with the US.

However, the decisions made did not go beyond the release of 10 trillion yuan (approximately US$ 1.4 trillion) to deal with off-balance-sheet debts, which led to disappointment.

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Vale And Brazilian Steel Companies Were Impacted

This scenario of frustrated expectations led to a wave of selling in the shares of major mining and steel companies in Brazil. Vale (VALE3) retreated by 4.61%, closing at R$ 60.63. Similarly, CSN Mining (CMIN3) fell by 5.49%, ending the day at R$ 5.85, and Usiminas (USIM5) experienced a decline of 6.02%, trading at R$ 6.25.

The only exception was Vale’s competitor, Gerdau (GGBR4), which recorded stability and closed the day at R$ 20.46, standing out in the market.

For many analysts, this drop in Vale’s shares and other Brazilian steel companies reflects the cautious stance of investors, who fear a potential slowdown in iron ore consumption in China. With the uncertain scenario, the most traded future iron ore contract on the Dalian Exchange in China fell by 1.65% and closed the day at 776 yuan (US$ 108.45) per ton. These figures highlight the market’s fragility in the face of Chinese policies.

Iron Ore Market Faces Difficulties

The situation for Vale and other Brazilian steel companies worsens when global uncertainties regarding the potential reelection of Donald Trump in the United States are factored in. Many expected China to respond with stronger policies, considering the threat of new trade barriers.

Lynn Song, chief economist for ING for Greater China, stated that the expectation was for the Chinese government to adopt a more expansive policy if Trump were to regain power.

However, without this robust economic support, the iron ore market faces difficulties. Vale and other Brazilian steel companies, which rely heavily on Chinese demand, must adopt a cautious stance while waiting for clearer definitions of international policies and the direction China intends to take.

Market on Alert, Iron Ore Evaporates on Exchange: China Impacts Shares of Mining Company Vale and Brazilian Steelmakers

China Disappoints The Market, And Iron Ore Plummets! Vale Stocks And Steel Companies Drop As Singapore Exchange Declines And Impact Is Devastating

Vale And Brazilian Steel Companies Were Impacted

Iron Ore Market Faces Difficulties

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Market on Alert, Iron Ore Evaporates on Exchange: China Impacts Shares of Mining Company Vale and Brazilian Steelmakers

China Disappoints The Market, And Iron Ore Plummets! Vale Stocks And Steel Companies Drop As Singapore Exchange Declines And Impact Is Devastating

Vale And Brazilian Steel Companies Were Impacted

Iron Ore Market Faces Difficulties

A giant printer called the “Ferrari” of concrete has landed in Latin America and can already build a 120-square-meter house in just 48 hours, making the traditional construction site look like something from the last century.

Great Atlantic Sargassum Belt has ceased to be a climatic phenomenon and has become a biological system that feeds on itself, with 8,000 kilometers in length, 37 million tons of algae, and scientists confirm that it is now permanent.

A British company has installed in the middle of the ocean the world’s first floating platform that generates electricity 24 hours a day from the temperature difference between the surface and the depths of the Atlantic, without relying on wind or sun.

Brazil will harvest a record crop of up to 357 million tons of grains, but it does not have the capacity to store a large part of it. The storage deficit has reached the highest level in history and is equivalent to almost the entire production of Argentina.

The James Webb telescope spotted a planet 700 light-years from Earth with mornings full of sand clouds and nights with clear skies, the temperature difference between the two hemispheres reaches an impressive 170 degrees.

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