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Vale Shares Rise 1.5% After Chinese Real Estate Relief Seen Boosting Steel Demand

By Jeffrey T. Lewis

 

SÃO PAULO--Brazilian iron miner Vale's shares rose 1.5% Tuesday after new loan-relief programs were announced in China for ailing real-estate developers.

Shares reached 65.43 reais, the equivalent of $13.31, and are down 27% from the end of last year through Monday's close. Brazil's benchmark Ibovespa stocks index was down 1.4% in morning trading.

China's central bank and top banking regulator both said Monday that the country's government would implement new measures to help cash-strapped real estate developers.

The relief could potentially increase demand for Vale's output, as Chinese steelmakers use large amounts of iron ore to make construction materials for real-estate developers.

 

Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com

 

(END) Dow Jones Newswires

July 11, 2023 10:20 ET (14:20 GMT)

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