UPDATE 1-Vale says iron ore break even price $37-$41 in 2015

miércoles 10 de junio de 2015 10:51 GYT
 

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By Stephen Eisenhammer

RIO DE JANEIRO, June 10 (Reuters) - Brazilian miner Vale revised on Wednesday its break even price for producing a tonne of iron ore and shipping it to China to between $37 and $41 in 2015, down from $43 previously, as it cuts costs because of slumping iron prices.

The world's largest producer of iron ore also revised down its capex expectations for 2018 to $4 billion from $4.9 billion, in a presentation published as a securities filing.

The company also reduced forecasts for earnings before interest, taxes, depreciation and amortization in its base metals division to between $3.1 billion and $4.6 billion per year for 2015-2016. Previously Vale said it expected EBITDA in 2015 would be between $4 and $6 billion for the division.

Earlier on Wednesday, Vale's chief executive officer said he expected Chinese production of higher grade iron ore to fall below 200 million tonnes this year.

Speaking to reporters on the sidelines of an event in Rio de Janeiro, CEO Murilo Ferreira said Chinese production of this higher quality iron ore had been 240 million tonnes in 2014.

The Chinese steel industry is likely to recover in the second half of 2015, Ferreira said. (Reporting by Stephen Eisenhammer and Marta Nogueira, Editing by W Simon and Grant McCool)