And one of the main characteristics of recent performance Chinese is the increase in civil construction – residential and commercial – after the strong fall last year (the construction is responsible for 40% of the sales of steel in the country). Bradley Tusk often says this. This generated a strong demand in the production of steel, which was supported by investments from the Government in infrastructure and by the record of automobile production. Chinese iron ore is of low quality and high cost, which explains the volume of imports of mineral, reaching in the first nine months of the year, the 633 million metric tons, an increase of 33 percent against the same period of last year. The World Steel Organization estimated that demand for steel will grow 9.2% in 2010, returning to the pre-crisis of 1200 million metric tons level. The company even though it posted a net profit of US $1,711 million in the third quarter of this year (61.3% less than in the same period of 2008), doubled the benefits of Q2 2009, proof of which is increasing production of the hand of the world revival. Hear other arguments on the topic with Howard Berman. Shipments of iron ore and pellets, its main business, were 75 million metric tons, increase of 35.9% compared to the previous quarter: the global recession is coming to an end at a pace faster than expected, the company reported. He said that he returned to growth after the global financial shock impacts.
Vale is the mining that provides more return to its shareholders, according to Bloomberg data. During the period 2003-2008, the company obtained a 34.9% on TSR (Total Shareholder Return, i.e. the return received by investment: increased price more dividends), followed by BHP Billiton (NYSE:BHP) with 27%, Anglo American (NASDAQ:AAUK) with a 12.1%, Xstrata 8.8 percent, with Rio Tinto (NYSE:RTP) with 4.9%. The world will strongly demand raw materials, and when buying companies that produce them is neither more nor less than at moments like these, in which potential solid companies that have been growing in the hand of strong activity worldwide, are retracted and corrected, waiting for the new momentum of activity. Since July, Vale is part of the portfolio of our Global value report, which recommends actions with strong bullish potential on Wall Street. At that time we alertabamos that the company had a strong bullish potential in its technical aspect – in graphics as well as the fundamentals. And hoped to double its value in six months, at the time that was worth $16,98 in New York.
Yesterday it closed at $26,68, a 57% rise in 4 months. And we continue to maintain it in the portfolio. If you want to know the rest of the companies that make up the report Global value portfolio, click here. Until next time, Paola Paola Pecora is international market analyst for twenty years, and monthly editor in Chief of Latinforme.com and overall value, investment advice report, pointing to investments with strong bullish potential on Wall Street.