Scotiabank Downgrades Vale S.A. (VALE) to Sector Perform

Scotiabank analyst Alfonso Salazar downgraded Vale S.A. (NYSE: VALE) from Sector Outperform to Sector Perform with a price target of $15.00 (from $14.00).

The analyst comments "Negative. In our view the iron ore market may face downward pressure as more supply is coming from top producers and from the new Simandou mine in Guinea, which is now ramping-up. Further, we see downside risks to iron ore demand if the decline of steel consumption in China accelerates, as new stimulus for infrastructure and real estate may be limited due to China’s high debt levels. Against a backdrop of continued demand contraction in China, global steel demand stability starts to look more as the best case scenario to us. This does not bode well for the surprisingly resilient iron ore price. We project the benchmark iron ore price to decline to US$90.00/t in 2H26. Vale shares were up 53% in 2025, and we think the stock price rally may now pause. We believe investors should look for a better entry point later in the year, as we continue to think Vale offers one of the most attractive valuations among mining companies."

For an analyst ratings summary and ratings history on Vale S.A. click here. For more ratings news on Vale S.A. click here.

Shares of Vale S.A. closed at $14.26 yesterday.

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