Berge Everest: Vale China Chess Game
"Everyone knows that China can change its mind very fast. It's a game of chess between China and Vale," said Hans Navik here
Traders say they believe Beijing will gradually lift the ban on large vessels since it would allow Vale to deliver iron ore more cheaply and give Chinese steelmakers room to negotiate lower prices. "If steel prices remain low this year, at the end of the day they have to look for cheap iron ore which Vale will be able to supply,"
In the eyes of many domestic industry players, the arrival and unloading of the Berge Everest signaled clear government support for Vale’s ambitious proposal to expand in China and rejection of the trade groups’ arguments. One source said they were right.
Vale apparently got around the bureaucracy in December by using the Berge Everest, a carrier owned by a Singapore company but leased to the Brazilian mining concern, to deliver ore.
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“After the successful berthing of the Berge Everest, it will be relatively easy for the Valemax fleet to berth here, too,” a longtime iron ore trader who works with Vale told Caixin. here