Edorao Bartolomeo, CEO of mining company Vale, said that China may be the largest buyer of iron ore in the world. But that does not mean that Beijing can succeed in setting its prices.
Bartolomeo explained in an interview ahead of the company’s annual investor day that Vale is confident that the balance between supply and demand will continue to determine prices. This is according to Bloomberg.
He added: The economic base will move the price, which means supply and demand. China cannot impose anything.
It is noteworthy that China raised concerns in the iron ore industry last year, when it established the state-backed China Mineral Resources Group. Which is trying to enhance its influence on prices.