Vallourec - comment

Vallourec has reopened its mine operations following a temporary closure over the weekend due to the heavy rains in the Brazilian region. The heavy rains caused some material from a waste pile to enter into a rainwater dam, causing it to overspill onto the highway. There were no causalities and the mine has now reopened.

We remain cautious on Vallourec’s equity and despite the share price rising in line with iron ore movement which is up more than 20% since mid-November, we don’t expect FY21 numbers will show any improvement in the underlying core “pipes” business.