The Brazilian mining giant Vale’s third-quarter net profits are expected to surge substantially by 70% year on year to hit US$2.8 billion, driven by lower input cost and increased iron ore prices, according to analysts.
It’s learned that Vale has devoted to cutting its input costs by US$1.65 billion in the first half of this year. Besides, Vale has benefited from the increasing demand for iron ore from Asian steel mills in the first half of this year.
Meanwhile, the iron ore prices averaged at US$132.5/ton in the third quarter, soaring by 18% year on year and higher than US$121/ton that the analyst previously forecasted.
Furthermore, the analyst also predicted that Vale’s net profits might hit US$11 billion in the whole of 2013, jumping by twofold from 2012.
