Usinas Siderurgicas de Minas Gerais SA is beating major steelmaker stocks on speculation cost cuts will make it profitable after four quarters of losses. The rally will continue, say Goldman Sachs Group Inc. and Deutsche Bank AG analysts.
Vale SA, the Brazilian iron ore miner fighting a $14 billion tax claim on its foreign units, will wait for a court ruling before deciding on a settlement offer, said a person with direct knowledge of the case.
Vale SA rose the most among major iron-ore producers after profit beat analysts’ estimates for the first time in two years on cost reductions and higher copper sales that offset lower prices for the steel ingredient.
Suzano Papel e Celulose SA and Fibria Celulose SA, Brazil’s best-performing paper makers this year, rallied as Goldman Sachs Group Inc. recommended buying the stocks, citing higher pulp demand and lower supply.
Vale SA, the cheapest of the world’s 15 biggest miners relative to earnings, is luring investment from BlackRock Inc. to Aberdeen Asset Management Plc after the stock slumped to the lowest in two and a half years.
After Murilo Ferreira helped Vale SA win a takeover battle for Canadian miner Inco Ltd. in 2006, his boss, Chief Executive Officer Roger Agnelli , promoted him to head the unit and build a global nickel business from Toronto.