MercadoLibre is once again the most valued company in Latin America

The free fall experienced by iron ore price They cost Brazilian producer Vale SA around US $ 40,000 million in market capitalization and the title of the most valuable company in Latin America.

Vale’s 32% collapse from late July high puts Rio de Janeiro-based miner value less than MercadoLibre, an e-commerce powerhouse that is now valued at $ 90 billion after strong financial technology performance in the last quarter.

The reversal, where a new economic platform grabs the top spot from a 79-year-old commodities producer, could be consolidated after China’s efforts to clean up its highly polluting industrial sector drove iron ore to less than $ 100 per metric ton.

Last week, UBS Group AG cut Vale’s buy-sell recommendation by two seats, while Bradesco BBI believes the risks in a volatile commodity price environment are biased downward. If iron ore averages $ 90 next year, Vale’s pre-game profits may fall short of consensus estimates of 38%.

Vale’s turnaround could have been even more dire without the massive investor payouts of $ 13.8 billion announced so far this year.

MF CP