Vale ready to meet rising demand from India as China steel production flattens, CEO says

[Iron Ore reclaimer machine and stockpile ]
Dazman/E+ via Getty Images

Vale (VALE [https://seekingalpha.com/symbol/VALE]) is preparing to meet rising iron ore demand from India [https://www.reuters.com/world/china/vale-gearing-up-meet-indian-demand-china-steel-output-stagnates-ceo-says-2025-11-10/], which should help to offset stagnant demand from China, where steel production has flattened to ~1 billion metric tons/year and could decline slightly in the coming years, CEO Gustavo Pimenta told Reuters in an interview Monday.

"India has 1.6 billion people, has surpassed China, and needs massive infrastructure investments, which means a lot of steel," Pimenta said, adding the capacity of India's steel producers likely will double to ~300 million tons in the next 5-7 years.

Vale's (VALE [https://seekingalpha.com/symbol/VALE]) high-grade ore blends well with India's lower-quality supply, creating opportunities for both markets, Pimenta also told Reuters.

While China will remain the world's top steel producer, Vale (VALE [https://seekingalpha.com/symbol/VALE]) sees China's output stabilizing, with Pimenta saying Chinese production "will probably remain steady, perhaps even decline," compared to India's 12% annual growth.

India is expected to import ~10 million tons of Vale's (VALE [https://seekingalpha.com/symbol/VALE]) iron ore this year, up from near zero a few years ago, but still a small fraction compared to China, which accounts for ~60% of the copany's sales.

Pimenta also said Vale (VALE [https://seekingalpha.com/symbol/VALE]) expects rising demand from other Asian markets, with sales to Vietnam projected at 8 million tons in 2025, up sharply from previous years.

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