Iron ore prices have crossed $100 per tonne and the bullish view is they could go higher. But don’t close your eyes to the risks.
Vale's move comes after disaster struck after one of Vale's tailing dams in Brazil burst, killing at least 65 people with hundreds still missing.
Disturbance in nickel production in Brazil might act as a boost for prices in the near term
The world's biggest miners predicted doom and gloom for 2016 six months ago when they booked their worst earnings in more than a decade, slashed dividends and put an array of copper, coal, iron ore and other assets on the block.
On challenges, the report said increasing regulatory pressure, uncertainty on mine allotments after passing of the MMDR Amendment Act, 2015, along with increased competition and growing threat from imports of iron ore are some of the issues that may impact the company's performance.
In an interview to CNBC-TV18, Chintan Mehta, Metal Analyst, Sunidhi Securities shares his views on metals and his preferred stocks going ahead.
Spot iron ore has lost 60 percent over the past 12 months, dropping below USD 50 a tonne this month for the first time since a key index pricing began in 2008, amid a glut as mega miners Vale, Rio Tinto and BHP Billiton expanded production.
From the big miners' point of view their low cash costs mean they will make money until the price of ore falls below USD 50 a tonne. It is the smaller miners that will suffer as the price falls
Concern about transparency in oil pricing has triggered European regulators to launch the biggest cross-border trading probe since the Libor interest rate scandal.
Karnataka expects to reopen 19 iron ore mines this fiscal year, which were shut by a court in 2011, increasing supplies to local steel mills by 30 million tonnes, the head of its mines department said.
Iron ore prices have jumped more than 12 per cent since the end of China's Golden Week holiday as traders and steel mills in the country return to the market.
Sony Corp cut output at five more plants and Toyota Motor Corp delayed restarting assembly lines, as the global supply of parts and products began to feel the full impact of Japan's catastrophic earthquake.
Resource-hungry Asian states are locking horns with steelmaker ArcelorMittal and miner Vale to develop the world's largest untapped coking coal deposit in Mongolia, as they scramble for raw materials to produce steel.
POSCO, the world's No 3 steelmaker, said on Sunday that it has agreed with Brazilian miner Vale to jointly seek to develop a coal mine in Mozambique.