Vale posts stronger iron ore output, sales in Q2
The on-year rise in iron ore output was supported by a robust performance at S11D from Vale's Northern System where the iron ore output achieved record production for a second quarter at 19.5 million tonnes, and the Southern System's Vargem Grande where iron ore production increased by 27.5% on year to reach 11.8 million tonnes, the report highlighted.
"This quarter's performance reinforces our confidence in achieving the upper end of the 2024 production guidance," Vale said in the report.
The mining giant's iron ore output guidance for the full year 2024 had been set at 310-320 million tonnes, and the Q2 results led its iron ore production to total 151.4 million tonnes for the first half of this year, 4.1% higher than the corresponding period of 2023.
Nonetheless, Vale's production of its premium product pellets in the past quarter was 2.2% lower on year at 8.9 million tonnes, with blame on lower pellet feed availability at the Vargem Grande plant and maintenance at the São Luis plant, the report explained.
As for sales, Vale sold 79.8 million tonnes of iron ore during the April-June quarter, marking a 7.3% on-year increase and a 25% jump on quarter. Vale attributed the robust sales growth to strong shipments as well as the sale of inventories from previous periods.
In particular, the Q2 sales of its high-silica products in the product mix witnessed further expansion, surging by 65% on quarter and 114.3% on year, respectively, to reach 13.8 million tonnes, Mysteel Global noted.
For the six months through June, Vale's aggregate iron ore sales were 143.6 million tonnes, 10.4% higher than the year-earlier level, the report showed.
Vale also disclosed that the average realized price for its iron ore fines was $98.2/wmt in Q2, lower by a marginal 0.3% on year and down by 2.5% from Q1, and that for pellets also lost 2% on year and a larger 8.6% on quarter to reach $157.2/wmt, according to the report.
Written by Irene Zhuang, zhuangailing@mysteel.com
Edited by Alyssa Ren, rentingting@mysteel.com
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