Vale SA (VALE:US), the world’s biggest iron- ore producer, surged the most in three months after rival Rio Tinto Plc raised its output forecast and Chinese imports of the steel-making ingredient rose to a record.
Rio de Janeiro-based Vale jumped 4.6 percent, the most since July 15, to 40.41 reais in Sao Paulo trading. Vale’s U.S.- traded shares (VALE:US) surged 6.7 percent to $26.69.
Rio Tinto, the third-largest mining company, boosted its 2009 forecast for iron ore output by as much as 7.5 percent as demand from steelmakers recovers. Posco, South Korea’s largest steelmaker, also raised its full-year profit forecast by 23 percent. Chinese imports of iron ore rose to 64.6 million metric tons, the customs bureau said on its Web site today.
“Rio Tinto and Posco gave very strong guidance today, and that helped Vale, which had been lagging” the Bovespa benchmark stock index in recent weeks, said Marcos Assumpcao, an analyst at Itau Unibanco Holding SA in Sao Paulo. “Chinese iron-ore import numbers were also good again.”
Vale is up 69 percent this year, compared with a 76 percent gain in the Bovespa index.
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