Citi downgrades Vale, opens ’90 day downside catalyst watch’

As previously reported, Citi analyst Alexander Hacking downgraded Vale to Neutral from Buy with a price target of $16, down from $20. Chinese steel demand appears "weak" and iron ore is about to enter a period of seasonal weakness driven by the China steel mill stocking cycle, says the firm, which adds that Vale’s share price remains "strongly correlated" with iron ore. The firm also opened a "90-day downside catalyst watch" on Vale shares.