Companhia
Vale do Rio Doce
On the rise
Acapulco, Mexico
January 20071
Disclaimer
”This
”This presentation
presentation may
may contain
contain statements
statements that
that express
express management’s
management’s
expectations
expectations about
about future
future events
events or
or results
results rather
rather than
than historical
historical facts.
facts.
These
These forward-looking
forward-looking statements
statements involve
involve risks
risks and
and uncertainties
uncertainties that
that could
could
cause
cause actual
actual results
results to
to differ
differ materially
materially from
from those
those projected
projected in
in forwardforwardlooking
looking statements,
statements, and
and CVRD
CVRD cannot
cannot give
give assurance
assurance that
that such
such statements
statements
will
will prove
prove correct.
correct. These
These risks
risks and
and uncertainties
uncertainties include
include factors:
factors: relating
relating to
to
the
the Brazilian
Brazilian and
and Canadian
Canadian economies
economies and
and securities
securities markets,
markets, which
which exhibit
exhibit
volatility
volatility and
and can
can be
be adversely
adversely affected
affected by
by developments
developments in
in other
other countries;
countries;
relating
relating to
to the
the iron
iron ore
ore and
and nickel
nickel businesses
businesses and
and their
their dependence
dependence on
on the
the
global
global steel
steel industry,
industry, which
which is
is cyclical
cyclical in
in nature;
nature; and
and relating
relating to
to the
the highly
highly
competitive
competitive industries
industries in
in which
which CVRD
CVRD operates.
operates. For
For additional
additional information
information on
on
factors
factors that
that could
could cause
cause CVRD’s
CVRD’s actual
actual results
results to
to differ
differ from
from expectations
expectations
reflected
reflected in
in forward-looking
forward-looking statements,
statements, please
please see
see CVRD’s
CVRD’s reports
reports filed
filed with
with
the
the Brazilian
Brazilian Comissão
Comissão de
de Valores
Valores Mobiliários
Mobiliários and
and the
the U.S.
U.S. Securities
Securities and
and
Exchange
Exchange Commission.”
Commission.”
2
Agenda
„ Reaping the results of a growth strategy
„ The nickel market
„ CVRD’s nickel business
„ The iron ore market
3
Reaping the results of
a growth strategy
4
CVRD has delivered a growth pipeline since
2002
Carajás
100 Mtpa
São Luís
Capão
Xavier
Mo I Rana
Pier III
PDM
Trombetas
TaquariVassouras
Fábrica
Nova
Brucutu
Capim
Branco I
1Q02
1Q02 2Q02
2Q02 3Q02
3Q02 4Q02
4Q02 1Q03
1Q03 2Q03
2Q03 3Q03
3Q03 4Q03
4Q03 1Q04
1Q04 2Q04
2Q04 3Q04
3Q04 4Q04
4Q04 1Q05
1Q05 2Q05
2Q05 3Q05
3Q05 4Q05
4Q05 1Q06
1Q06 2Q06
2Q06 3Q06
3Q06 4Q06
4Q06 1Q07
1Q07
Alunorte 3
Funil
Carajás
70 Mtpa
Sossego
Candonga
Carajás
85 Mtpa
Aimorés
Alunorte
4&5
Paragominas
5
Despite a five fold increase in invested
capital, ROIC remains above 50%
Return on invested capital
1
Invested
Invested capital
capital (US$
(US$ billion)
billion) 1
50.1%
50.1%
47.2%
47.2% 47.0%
47.0% 46.8%
46.8%
48.9%
48.9%
64.4%
64.4%
ROIC²
ROIC² (%)
(%)
51.4%
51.4% 51.1%
51.1%
59.6%
59.2%
59.2% 59.6%
58.1%
58.1%
54.7%
55.1%
54.7% 55.1%
52.9%
52.9%
14.7
14.7
11.0
11.0
16.0
16.0
55.2%
55.2%
16.7
16.7
11.1
11.1
9.6
9.6
3.3
3.3
3.8
3.8
5.1
5.1
5.4
5.4
5.6
5.6
6.4
6.4
7.0
7.0
7.5
7.5
8.0
8.0
1Q03
1Q03 2Q03
2Q03 3Q03
3Q03 4Q03
4Q03 1Q04
1Q04 2Q04
2Q04 3Q04
3Q04 4Q04
4Q04 1Q05
1Q05 2Q05
2Q05 3Q05
3Q05 4Q05
4Q05 1Q06
1Q06 2Q06
2Q06 3Q06
3Q06
¹¹ PP&E
PP&E +
+ working
working capital
capital +
+ R&D
R&D
²² Before
income
tax,
last
twelve-month
Before income tax, last twelve-month period
period
6
Acquisitions are also a source of value
creation. CVRD restructured its business
portfolio making several acquisitions in the
iron ore and nickel industries and divestitures
in non-core assets.
2000-2006
ACQUISITIONS
DIVESTITURES
US$ 23.7 billion
US$ 2.8 billion
7
CVRD: a global leader in total shareholder
return among major global companies
THE LARGE CAP TOP 10, 2001 - 2005²
COMPANY
TSR 2006³
TSR¹ (%)
COMPANY
TSR (%)
1
Apple
57.4
1
CVRD
47.9
2
CVRD
53.5
2
BAT
29.8
3
Ebay
39.3
3
BHP Billiton
21.1
4
Samsung Electronics
35.3
4
Apple
18.0
5
Softbank
30.7
5
Caterpillar
8.1
6
BAT
27.4
6
Samsung Electronics
1.1
7
Mitsubishi Corporation
26.8
7
Lowe's
-6.1
8
Lowe's
24.8
8
Mitsubishi Corporation
-13.5
9
BHP Billiton
24.1
9
Ebay
-30.4
Caterpillar
22.5
10
Softbank
-53.5
10
¹TSR average between 2001 and 2005
²Source: Boston Consulting Group. Large cap = companies with market cap above US$ 35 billion
³Source: Bloomberg
8
CVRD has the highest total shareholder return
among major mining companies
Total
Total shareholder
shareholder return
return (TSR)
(TSR)
2001-2006
2001-2006
CVRD
CVRD
42.7%
42.7%
11
Xstrata
Xstrata
39.0%
39.0%
BHP
BHP Billiton
Billiton
28.9%
28.9%
Anglo
Anglo American
American
Rio
Rio Tinto
Tinto
27.6%
27.6%
23.3%
23.3%
11
Since
Since Xstrata
Xstrata was
was listed
listed in
in the
the London
London Stock
Stock Exchange
Exchange only
only in
in 2002,
2002, the
the TSR
TSR was
was calculated
calculated for
for the
the period
period from
from
March
March 19,
19, 2002
2002 to
to December
December 31,
31, 2006.
2006.
Source:
Source: Bloomberg
Bloomberg
9
After Inco’s acquisition, CVRD will have a
new sales revenue distribution
9M06
CVRD
US$ 12.9 billion
Combined
US$ 18.2 billion
PGM
PGM
1.2%
1.2%
Copper
Copper
4.6%
4.6%
Others
Others
2.9%
2.9%
Copper
Copper
7.1%
7.1%
Iron
Iron ore
ore &
&
pellets
pellets
48.4%
48.4%
22
Aluminum
Aluminum
13.2%
13.2%
Logistics
Logistics
8.0%
8.0%
Manganese
Manganese &
&
ferroalloys
ferroalloys
2.9%
2.9%
cobalt, kaolin
kaolin and
and potash
potash
alumina
aluminum, alumina and
and bauxite
bauxite
Iron
Iron ore
ore &
&
pellets
pellets
68.4%
68.4%
Nickel
Nickel
23.4%
23.4%
1
Others
Others 1
Logistics
2.7%
2.7%
2 Logistics
Aluminum
Aluminum 2
5.7%
5.7%
9.4%
9.4%
Manganese
Manganese &
&
ferroalloys
ferroalloys
2.1%
2.1%
11
cobalt,
22
aluminum,
10
… and a new level of financial indicators
Selected
Selected financial
financial indicators
indicators
9M
9M period
period ended
ended at
at September
September 30,
30, 2006
2006
US$
US$ million
million
Combined
Combined
Gross
Gross revenues
revenues
Adjusted
Adjusted EBIT
EBIT
Adjusted
Adjusted EBIT
EBIT margin
margin (%)
(%)
18,214
18,214
7,185
7,185
40.6
40.6
Adjusted
Adjusted EBITDA
EBITDA
8,680
8,680
Net
Net earnings
earnings
5,447
5,447
Total
Total debt
debt
11
includes
includes bridge
bridge loan
loan
22,151
22,15111
11
The nickel
market
12
The stainless steel industry is the largest user
of nickel
Global nickel consumption
Non
Non ferrous
ferrous
alloys¹
alloys¹
14%
14%
Plating
Plating
7%
7%
Alloy
Alloy steels
steels
5%
5%
Batteries
Batteries
3%
3%
Stainless
Stainless steel
steel
62%
62%
Others
Others
9%
9%
¹¹ includes
includes superalloys
superalloys and
and high
high nickel
nickel alloys
alloys used
used by
by the
the aerospace
aerospace industry
industry and
and energy
energy exploration,
exploration, production
production and
and storage
storage
Source:
Source: CRU
CRU
13
The stainless steel industry and nickel demand
global production 2006
Stainless steel
28.1 Mt
Austenitic steel 11
21.2 Mt
Austenitic ratio (AR)22
75.5%
Scrap Ratio33
48.0%
Nickel Content44
Primary nickel
8.3%
915 kt
11
Steel
Steel that
that contains
contains nickel.
nickel. Series
Series 200
200 and
and 300.
300.
austenitic steel
steel production
production // total
total stainless
stainless steel
steel production,
production, that
that is
is Series
Series 200
200 and
and 300
300 production
production //
Series
Series 200,
200, 300
300 and
and 400
400 production.
production.
33
use
use of
of scrap
scrap // total
total nickel
nickel used
used in
in austenitic
austenitic steel
steel production,
production, that
that is
is scrap/(scrap+primary
scrap/(scrap+primary nickel).
nickel).
44
average
average nickel
nickel content
content in
in the
the austenitic
austenitic steel
steel production
production
Sources:
Sources: CVRD
CVRD and
and CRU
CRU
22
austenitic
14
Price elasticity of demand for nickel by the
stainless steel industry is constrained by
technological options
World austenitic ratio
79%
79%
77%
77%
75%
75%
73%
73%
71%
71%
1980
1980
Source:
Source: CRU
CRU
1990
1990
2000
2000
2006
2006
15
-15%
-15%
70
70
-20%
-20%
Source:
Source: CRU
CRU
3Q06
3Q06
4Q06
4Q06
1Q06
1Q06
2Q06
2Q06
3Q05
3Q05
4Q05
4Q05
1Q05
1Q05
2Q05
2Q05
3Q04
3Q04
4Q04
4Q04
1Q04
1Q04
2Q04
2Q04
3Q03
3Q03
4Q03
4Q03
1Q03
1Q03
2Q03
2Q03
3Q02
3Q02
4Q02
4Q02
1Q02
1Q02
2Q02
2Q02
3Q01
3Q01
4Q01
4Q01
1Q01
1Q01
2Q01
2Q01
3Q00
3Q00
4Q00
4Q00
1Q00
1Q00
2Q00
2Q00
3Q99
3Q99
4Q99
4Q99
1Q99
1Q99
2Q99
2Q99
3Q98
3Q98
4Q98
4Q98
100
100
15%
15%
95
95
10%
10%
90
90
5%
5%
0%
0%
85
85
-5%
-5%
80
80
-10%
-10%
Quarterly consumption
consumption growth
growth (%)
(%)
Quarterly
75
75
1Q98
1Q98
2Q98
2Q98
Scrap price
price
Scrap
% of
of LME
LME nickel)
nickel)
(( %
Scrap prices varies from 75% to 97% of the
LME nickel price
16
Current nickel supply depends on sulphides,
while future supply depends on laterites
World nickel resources
Sulphides
Sulphides
28%
28%
- high mining costs
- low smelting costs
- low capex costs
- no technological challenge
- high by-products credits
(eg. Au, Ag, PGMs)
Laterites
Laterites
45%
45%
World
World nickel
nickel
production
production11
Sulphides
Sulphides
55%
55%
Laterites
Laterites
72%
72%
- low mining costs
- high smelting costs
- high capex costs
- technological challenge
- low by-products credits
(eg. cobalt)
11
2006
2006 estimated
estimated world
world production
production
Sources:
Sources: CRU,
CRU, MEG
MEG and
and Brook
Brook Hunt
Hunt
17
Sulphide benefits from higher by-product
credits
C1 Cost Components
(2005 Basis)
55
By-product
By-product credits
credits
44
Mine
Mine site
site &
& delivery
delivery costs
costs
Smelting
Smelting
Refining
Refining &
& marketing
marketing
3.53
3.82
3.82
before credit
3.29
0.98
2.57
after credit
(0.23)
(2.82)
(1.25)
Laterites
Laterites
Sulphides
Sulphides
Sulphides
Sulphides exc.
exc. Norilsk
Norilsk
US$/lb Ni
33
22
11
00
-1
-1
-2
-2
-3
-3
Source:
Source: Brook
Brook Hunt
Hunt
18
Besides the technology challenge, laterite
projects present higher capex per ton
Source:
Source: Brook
Brook Hunt
Hunt
19
Low real prices for more than a decade led
to underinvestment in nickel
nickel
nickel prices,
prices, in
in real
real terms¹
terms¹
30000
30000
25000
25000
US$ /
/ ton
ton
US$
20000
20000
15000
15000
10000
10000
5000
5000
2006
2006
2005
2005
2004
2004
2003
2003
2002
2002
2001
2001
2000
2000
1999
1999
1998
1998
1997
1997
1996
1996
1995
1995
1994
1994
1993
1993
1992
1992
1991
1991
1990
1990
1989
1989
1988
1988
1987
1987
1986
1986
1985
1985
1984
1984
1983
1983
1982
1982
1981
1981
1980
1980
00
¹¹ 2005
2005 prices,
prices, deflated
deflated by
by US
US PPI
PPI
Sources:
Sources: LME
LME and
and CVRD
CVRD
20
Major greenfield nickel projects
Capacity
kt
CVRD
BHPB
AA
Voisey’s Bay
55
Onça Puma
57
Goro
60
Vermelho
46
Ravensthorpe
45
Barro Alto
40
21
The BRICS stainless steel consumption per
capita still low
GDP and stainless steel consumption per capita - 2005
Stainless Consumption
Consumption (Kg)
(Kg) per
per
Stainless
capita
capita
25
25
Italy
Italy
South
South Korea
Korea
20
20
Germany
Germany
Japan
Japan
15
15
Spain
Spain
10
10
USA
USA
Brazil
Brazil
China
China
00
00
France
France
UK
UK
Russia
Russia
India
India
55
Canada
Canada
22
44
66
88
10
10 12
12 14
14 16
16 18
18 20
20 22
22 24
24 26
26 28
28 30
30 32
32 34
34 36
36 38
38 40
40 42
42 44
44
GDP
GDP $
$ '000
'000 per
per capita
capita
Source:
Source: World
World Stainless
Stainless Steel
Steel Statistics,
Statistics, 2006
2006 edition
edition
22
China will be the major driver of nickel demand
growth in the next years, with an estimated growth
rate close to 20% p.a.
2005-2010
2005-2010
CAGR
CAGR
‘000 tons
tons of
of contained
contained nickel
nickel
‘000
1700
1700
1500
1500
1300
1300
China
China (%
(% China/Total
China/Total World)
World)
Rest
Rest of
of the
the World
World
1.486
1.486
1.236
1.236
21.4%
23.1%
5.8%
5.8%
28.6%
19.6%
19.6%
1.547
1.547
1.352
1.352
17.9%
1100
1100
1.463
1.463
1.638
1.638
25.3%
15.5%
900
900
2.3%
2.3%
700
700
500
500
2005
2005
Source:
Source: CRU
CRU
2006e
2006e
2007p
2007p
2008p
2008p
2009p
2009p
2010p
2010p
23
The imbalance in the nickel market
should continue
„ Global growth and Chinese investments in stainless
steel will continue to drive demand growth.
„ Austenitic ratio less sensitive to price variations due to
technology limitations.
„ Demand in non-stainless steel applications is being
driven by recovery in aerospace, energy and batteries
industries.
„ Supply expansion is constrained in the short-term by
technological challenges, high capex, lack of resources
and production disruptions.
24
Nickel inventories are minimal and demand is
growing strongly
45000
45000
Inventories
Inventories -- LME
LME
40000
40000
Nickel
Nickel 3-month
3-month LME
LME
40000
40000
35000
35000
30000
30000
30000
30000
25000
25000
25000
25000
20000
20000
20000
20000
15000
15000
15000
15000
10000
10000
10000
10000
5000
5000
5000
5000
00
2000
2000
Source:
Source: LME
LME
price (( US$
US$ per
per ton)
ton)
price
inventory (metric
(metric tons)
tons)
inventory
35000
35000
00
2001
2001
2002
2002
2003
2003
2004
2004
2005
2005
2006
2006
25
CVRD’s nickel
business
26
Top global nickel producers in 2005
2005 Production
‘000
‘000 tons
tons of
of contained
contained nickel
nickel
Norilsk
Norilsk Nickel
Nickel
242
242
CVRD
CVRD
204
204
BHP
BHP Billiton
Billiton
145
145
Xstrata
Xstrata
Jinchuan
Jinchuan
Sources:
Sources: AME
AME Mineral
Mineral Economics
Economics and
and CVRD
CVRD
115
115
91
91
27
The largest world reserves
Reserves11
million
million tons
tons of
of contained
contained nickel
nickel
CVRD
CVRD
22
11.3
11.3
Norilsk
Norilsk Nickel
Nickel
6.0
6.0
BHP
BHP Billiton
Billiton
Minara
Minara /
/ Glencore
Glencore
Xstrata
Xstrata
Anglo
Anglo American
American
11
22
4.6
4.6
1.5
1.5
1.3
1.3
1.1
1.1
P&P
P&P reserves
reserves
part
part of
of CVRD’s
CVRD’s P&P
P&P reserves,
reserves, representing
representing 3.5
3.5 Mt,
Mt, are
are not
not audited.
audited.
Sources:
Sources: AME
AME Mineral
Mineral Economics
Economics and
and CVRD
CVRD
28
CVRD’s nickel reserves
2006
Mt
reserves
reserves
Nickel
Nickel
P&P
P&P
(%)
(%)
245.3
245.3
0.81
0.81
1.99
1.99
86.3
86.3
1.75
1.75
1.51
1.51
163.0
163.0
1.22
1.22
1.99
1.99
Thompson
Thompson
25.0
25.0
1.90
1.90
0.48
0.48
Voisey’s
Voisey’s Bay
Bay
32.0
32.0
2.75
2.75
0.88
0.88
Indonesia
Indonesia
147.0
147.0
1.80
1.80
2.65
2.65
New
New Caledonia
Caledonia
120.0
120.0
1.48
1.48
1.78
1.78
Total
Total
818.6
818.6
1.34
1.34
11.30
11.30
Vermelho
Vermelho11
Onça
Onça Puma
Puma11
Sudbury
Sudbury
11
Not
Not audited.
audited.
Nickel
Nickel
29
One of the lowest cost producers in the world
2006 industry cash cost
55
C1 Cash
Cash Cost
Cost (US$/lb.Ni)
(US$/lb.Ni)
C1
44
33
22
CVRD
11
Norilsk
Norilsk Nickel
Nickel
00
00
250
250
500
500
750
750
1.000
1.000
1.250
1.250
1.500
1.500
1.750
1.750
2.000
2.000
2.250
2.250
2.500
2.500
-1
-1
-2
-2
-3
-3
Source:
Source: Brook
Brook Hunt
Hunt
30
CVRD produces more value-added products, being
less exposed to the steel industry compared to the
general nickel market
CVRD’s nickel sales
Plating
Plating
24%
24%
11
Non
Non ferrous
ferrous
alloys
alloys
17%
17%
ValueValueadded
added 22
specialty
specialty
9%
9%
Foundry
Foundry
4%
4%
Stainless
Stainless
steel
steel &
&
alloy
steels
alloy steels
41%
41%
Others
Others
5%
5%
¹¹ includes
includes superalloys
superalloys and
and high
high nickel
nickel alloys
alloys used
used by
by the
the aerospace
aerospace industry
industry and
and energy
energy exploration,
exploration, production
production and
and storage
storage
powders,
powders, foams,
foams, flakes,
flakes, oxides
oxides and
and nickel-coated
nickel-coated graphite.
graphite. These
These products
products are
are used
used for
for consumer
consumer electronics,
electronics, powder
powder
metallurgy,
metallurgy, rechargeable
rechargeable batteries,
batteries, fuel
fuel cells,
cells, auto
auto parts,
parts, computers,
computers, cellular
cellular telephones
telephones and
and hard
hard metal
metal binders
binders
31
Source:
Source: CVRD
CVRD
22
The iron ore
market
32
Chinese iron ore imports reached 326.4 Mt
in 2006, 51 Mt higher than 2005 imports
350
350
Chinese iron ore imports - LTM
300
300
million tons
tons
million
250
250
200
200
150
150
100
100
50
50
00
2002
2002
Source:
Source: CEIC
CEIC
2003
2003
2004
2004
2005
2005
2006
2006
33
China’s domestic iron ore has lost ground in
its iron ore consumption despite production
growth since 2002
300
300
Domestic
Domestic ore
ore
80%
80%
Domestic
Domestic /
/ total
total
70%
70%
60%
60%
million tons
tons
million
200
200
50%
50%
40%
40%
30%
30%
100
100
20%
20%
10%
10%
0
0
0%
0%
1999
1999
2000
2000
Sources:
Sources: CVRD
CVRD and
and Tex
Tex Report
Report
2001
2001
2002
2002
2003
2003
2004
2004
2005
2005
2006e
2006e
34
CVRD is supporting the massive growth of
Chinese iron ore demand
Iron ore sales to China
CAGR 2001-2006 = 36.3%
74,3
million tons
54,2
41,0
29,5
15,8
2001
1
18,6
2002
LTM period ended at September 30, 2006
2003
2004
2005
2006 1
35
SSF price is still lower than spot prices, even
when adjusted by the 2007 benchmark price
140
140
SSF
SSF C&F
C&F Beilun
Beilun
Chinese
Chinese iron
iron ore
ore spot
spot
Indian
Indian iron
iron ore
ore C&F
C&F
100
100
80
80
93.6
85.9
79.0
60
60
40
40
20
20
jjaan
n//
0044
ffeev
v//
0044
a
abb
rr//0
044
jjuu
nn//
0044
aagg
oo//
0044
oouu
tt//0
044
ddee
zz//
0044
jjaan
n//
00
m 55
m
aarr
//00
m 55
m
aaii/
/00
55
jjuu
ll//00
55
ssee
tt//0
05
nnoo 5
vv//
0055
d
dee
zz//
0055
ffeev
v//
0066
a
abb
rr//0
066
jjuu
nn//
006
aagg 6
oo//
0066
oouu
tt//0
066
ddee
zz//
0066
US$ /
/ ton
ton
US$
120
120
Sources:
Sources: Mysteel,
Mysteel, Clarksons
Clarksons and
and CVRD
CVRD
36
The results of our econometric tests show
that iron ore prices do not revert to the mean
Iron ore
Period
Average real price 1
Mean reversal
1900-2006
41,9
no
1958-2006
45,8
no
1958-2004
44,8
no
80
80
US$ cents
cents // fe
fe unit
unit
US$
SSF prices – Europe
60
60
40
40
20
20
00
1900
1900
1
1910
1910
1920
1920
1930
1930
1940
1940
1950
1950
US$ cents per Fe unit, adjusted by PPI; 2006 basis.
Sources: USGS and CVRD
1960
1960
1970
1970
1980
1980
1990
1990
2000
2000
37
We expect the global iron ore market to stay
tight for the near future
„ CISA forecasts a 13% p.a. average growth rate for
Chinese steel production during 2006-2012
„ The Middle East is the new world booming region:
investments in construction and industrial capacity
in the GCC11 countries are growing dramatically
„ Indian iron ore export growth will lose steam due
to the requirements of an expanding domestic
steel industry
11
GCC(Gulf
GCC(Gulf Cooperation
Cooperation Council)
Council) countries:
countries: Saudi
Saudi Arabia,
Arabia, UAE,
UAE, Kuwait,
Kuwait, Oman,
Oman, Qatar
Qatar and
and Bahrain.
Bahrain.
38
We expect the global demand for iron ore to
increase 215 Mt from 2006 to 2010
Global seaborne trade
China
China
452
452
360
360
RoW
RoW
484
484
372
372
537
537
389
389
603
603
395
395
670
670
725
725
440
440
400
400
405
405
148
148
270
270
92
92
112
112
208
208
320
320
2001
2001
2002
2002
2003
2003
2004
2004
2005
2005
2006
2006
CAGR 2001-05
CAGR 2005-10E
Source: CVRD
World
11.0%
5.7%
780
780
885
885
China
31.5%
10.5%
410
410
370
370
2007E
2007E
445
445
2010E
2010E
RoW
3.2%
1.9%
39
We expect the global demand for pellet to
increase 106 Mt from 2006 to 2010
Pellet demand
450
450
million t
283
283
2003
2003
309
309
2004
2004
320
320
2005
2005
344
344
2006e
2006e
367
367
2007p
2007p
2010p
2010p
Sources: CRU and CVRD
40
CVRD – A global leader
www.cvrd.com.br
rio@cvrd.com.br
rio@cvrd.com.br41