Vale: Rising Iron Ore Prices A Boon, But Momentum Challenges Persist


  • Iron ore prices have rebounded in Q2, benefiting Brazil-based Vale S.A., the largest producer of iron ore.
  • Vale’s Q1 net profit was hampered by weakness in commodity prices, but a resource rebound could boost earnings in the current quarter.
  • Vale’s valuation is compelling, but its technical chart shows caution, with key support at $11 and resistance at $15.
Aerial view of Open-pit iron mine


Resource commodity prices have been extremely strong so far in 2024. Much of the attention has been focused on base and industrial metals, like copper, but iron ore has rebounded from a tough start to the year. Perhaps the most highly correlated stock to

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Leave a Reply

Your email address will not be published. Required fields are marked *