News

Golden Ten Data reported on June 9 that Gustavo Pimenta, CEO of the world’s largest iron ore producer Vale, stated that there are currently no signs of war disrupting global metals market demand. Instead, after the Iran conflict disrupted raw material transportation, the company's profit margins actually expanded. Pimenta said that Vale is focused on unlocking the value of its own assets rather than seeking acquisition opportunities. He added that global demand for key minerals has always been “highly constructive” for the company. The disruption in the Strait of Hormuz transportation raised fuel prices and shipping rates, impacting miners such as Vale. However, price increases and sales growth offset these effects. Vale has raised its full-year free cash flow forecast for its core iron ore business by 1.5 billion US dollars to reflect the positive impact of rising iron ore prices since the outbreak of the Iran war. Vale now expects the average iron ore price this year to reach 112 US dollars per ton, higher than the pre-conflict forecast of 102 US dollars per ton.

Last Friday, on the day the nonfarm payroll data was released, the Korean won against the US dollar dropped to 1,562.29 won, marking its lowest level since March 2009. It has now moved away from this historical low range.

Jinse Finance reported that on June 9, Morgan Stanley strategists David Adams, Andrew Watrous, and Molly Nickolin wrote in a report on Monday that the outlook for the Federal Reserve will determine the next phase of the US dollar’s movement. If the Federal Reserve does not raise interest rates, the rally of the US dollar is likely overdone.