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Brazil Property News: Vale wants to boost output
14th August 2008 07:00
A Brazilian iron ore giant has ordered 12 large carriers for the mineral as it aims to boost "fast-growing" business with its Asian customers, it has been reported.
Vale anticipates the vessels will enable it to reduce shipping costs and makes its commodity competitive in the booming Chinese steel industry, according to Mercopress.
The world's largest iron ore miner aims to boost its output by 50 per cent to 450 million tonnes over the course of the next five years, which could heighten the Brazilian property market.
Eduardo Bartolomeo, the firm's executive director for logistics, told the news provider taking into account all the company's expansion projects he does not expect demand for the mineral to be down in the next two to three years.
China's crude steel output this year is expected to rise by ten per cent to 550 million tonnes.
"So what we are doing is to find that option that gets iron ore closer. What we are doing is to stimulate steelmakers to build larger ships," Mr Bartolomeo explained.
Meanwhile, it was reported by the Brazzil Magazine earlier in the week that new figures released by the National Association of Vehicle Manufacturers found the Latin American country's automobile industry has produced the sixth-highest number of vehicles worldwide during the first half of 2008.
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