VALE: Shares In Brazil Plummet Despite Record Iron Ore Production

(RTTNews) - Vale's shares fell by more than 3% a few hours ahead of the Brazilian stock market closing and lead Ibovespa lower despite the miner's report showing a record iron ore production in the second quarter of this year.

Market analysts interviewed by CMA News Agency expected the company to release an increase in output for the second quarter of this year and said that Vale's stock price movement was a result of lower iron ore prices abroad. They also expect the miner to publish lower earnings next week.

Vale's preferred shares (VALE5) fell 3.17% to R$ 27.12 each, while the common shares (VALE3) were down 3.37%, to R$ 28.89 each. The shares of Bradespar (BRAP4), Vale's shareholder, were also down 3.61%, to R$ 21.10 each.

"Iron ore has fallen sharply, by 3.12% on the spot market, in Qingdao port, and also declined in the Chinese futures market. Vale's shares are very sensitive to the price of the ore," said Guide Investimentos strategist Luis Gustavo Pereira.