Vale: Mine closures will see iron ore rally in 2015

Vale: Mine closures will see iron ore rally in 2015. Vale SA, the world's biggest iron- ore producer, predicts prices of the steelmaking ingredient will rally at least 24 percent next year as high-cost mines shut and Asian infrastructure demand improves. Iron ore, which has slumped 49 percent this year to $68.49 a dry metric ton, will return to an average range of $85 to $90 next year, Vale Chief Executive Officer Murilo Ferreira said in an interview today. A very fast transition to an oversupplied iron-ore market triggered big movements in price during 2014, he said. The market is undershooting at the moment and this will bring about a correction, Ferreira, 61, said at the company's headquarters in Rio de Janeiro. This correction will come through the closure of many inefficient miners of high cost and poor quality iron ore.