Vale sees iron ore prices above USD 110 /mt in 2013

Mr Murilo Ferreira CEO of Vale SA as saying that Brazil's Vale SA, the world's top producer of iron ore, expects iron ore to hold above USD 110 a tonne this year with demand from China likely to remain relatively strong in the near future.

Mr Ferreira in a presentation at the Credit Suisse Asian Investment Conference in Hong Kong said that "We forecast USD 110 to USD 145 in terms of the average for this year."

He said that Vale was bullish about future growth in demand from China, the world's biggest iron ore consumer, noting that it was not likely to be affected by Beijing's efforts to restructure its bloated steel sector. He also dismissed concerns about a Chinese real estate bubble.

He added that "What has happened is that we have some surplus in cities like Shanghai and Beijing. We strongly believe that we have good demand in the near future."

Iron ore prices, now trading at around USD 134 a tonne, have been volatile over the past Q2 amid uncertainty about growth in China.

Earlier this month, China's top economic planning agency lashed out at the world's top 3 iron ore miners, accusing them and some traders of manipulating the market to drive an 80% rally in ore prices in just 6 months