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.
Nothing like talking your own book, right?
Although Vale produce at highest grades so in reality they probably don't care if the market gets flushed out.