Vale SA,the world's largest iron ore producer,climbed to a seven month high as prices for the steelmaking material rebound.
Vale,based in Rio de Janeiro,climbed for an eighth day,gaining 1.7%to BRL 41 at the close in Sao Paulo,the highest since May 3rd.The Brazilian benchmark Bovespa Index gained 1.5%.
According to a price index compiled by The Steel Index Ltd,iron ore for immediate delivery rose to a five month high of USD 132.20 a metric tonne.
Mr Laurence Balter,who oversees USD 100 million including Vale shares at Oracle Investment Research in Fox Island,Washington said that the recovery from a three year low in September stems from rising Chinese demand.
Mr Balter said that"Vale is in the sweet spot for this rebound,Iron ore prices were far too low."
However,Vale is up 28%from a three year low on September 4th,outperforming the Bovespa's 7.5 percent increase in the same period.
