Ore prices may see some "adjustments" in 2011 after a surge the past year, but nothing significant as demand for the raw material used for steelmakers is on a rising trend, he added.

"For the next two years, certainly there will be a very strong market for iron ore, but the issue of supply and demand is what will rule that," Agnelli told Estado. "Demand for iron ore still is above output capacity, so I believe prices will continue firm."

Steelmakers have been increasing their presence in the iron ore business, seeking to keep their costs lower by tapping mines directly, but Vale is unconcerned about competition from its clients, Agnelli said. The move by steelmakers to diversity into iron ore production is a "fad" that will go away as companies focus on their core business, he added. (Reporting by Elzio Barreto; Editing by John Picinich)

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