Vale Shares Fall 3.2% on Concerns Over China's Economy

By Jeffrey T. Lewis

SÃO PAULO--Vale's shares were 3.2% lower on investor concerns that China's economic troubles might reduce demand for the Brazilian iron ore miner's main product.

Shares reached 65.70 reais, the equivalent of $12.96, and were down 24% from the end of last year through Tuesday's close. Brazil's benchmark Ibovespa stocks index was down 1.2% in late-morning trading.

Chinese GDP figures for the third quarter came in a bit better than expected, but they also indicated that much of the growth in the period stemmed from government stimulus measures rather than normal demand, said Sidney Lima, a São Paulo-based independent stocks analyst.

China's indicators of real estate demand have also shown a decline, and the state of the Asian country's housing sector is a big worry for investors as well, Lima said. The construction industry is a big consumer of steel, and iron ore is the alloy's main ingredient.

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

(END) Dow Jones Newswires

October 18, 2023 11:22 ET (15:22 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.