Brazil's Vale, the world's largest iron ore miner, is set for a financial windfall as Chinese steel mills desperately try to secure long-term contracts before winter curbs on output come into effect. Government-sanctioned limits are set to be placed on production for the second consecutive year in China in an effort to tackle high emissions levels, with Tangshan, the country's leading steel producing city, set to be hit with output restrictions of around 65 percent. As a result, the demand for high-quality steel imports has surged, with Chinese companies prepared to pay increasingly inflated prices to secure alternative products.
Brazil's Vale, the world's largest iron ore miner, is set for a financial windfall as Chinese steel mills desperately try to secure long-term contracts before winter curbs on output come into effect. Government-sanctioned limits are set to be placed on production for the second consecutive year in China in an effort to tackle high emissions levels, with Tangshan, the country's leading steel producing city, set to be hit with output restrictions of up to 70%. As a result, the demand for high-quality steel imports has surged, with Chinese companies prepared to pay increasingly inflated prices to secure alternative products.