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.
Cia. Siderurgica Nacional SA, Brazil’s third-largest steelmaker, fell to the lowest in more than seven years after Goldman Sachs Group recommended investors sell the stock because of deteriorating iron-ore results.
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 world’s biggest iron- ore producer, fell to a six-month low as Goldman Sachs Group Inc. lowered its estimate for the value of the material and cut the price target on the company’s American depositary receipts.
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.
Fibria Celulose SA and Suzano Papel & Celulose SA, Brazil’s biggest pulp makers, had their earnings estimates cut by more than any other company in the country as the industry adds factories amid waning overseas demand.