Brazil: Vale cuts iron ore production guidance to 310-320 mnt for CY'22

Brazilian miner Vale SA has trimmed its iron ore production guidance to 310-320 mnt for CY'22 as against the previous 320-335 mnt.

The miner's iron ore production stood at 74.11 million tonnes (mnt) in Q2CY'22, up 17% as against 63.13 mnt in Q1CY'22. The total volume includes third-party purchases, run-of-mine ore, and feed for pelletizing plants, but excludes volumes from the Midwestern System.

The rise in q-o-q output was primarily driven by the South-eastern and Southern Systems' strong dry-season performance and higher third-party purchase.

However, on a yearly basis, output inched down by 1% compared to 75 mnt in Q2CY'21.

Pellet output up 25% q-o-q: Total pellet output was recorded at 8.67 mnt in Q2, up 25% q-o-q compared to 6.92 mnt in Q1. On a yearly basis, output increased by 8% as against 8 mnt. Pellet production rose due to higher performance of the company's Oman plant and higher pellet feed availability at the Vargem Grande plant.

Iron ore and pellet sales up

Iron ore and pellet sales increased by 23% to 73.16 mnt in Q2 as against 59.36 mnt in Q1. Of this, iron ore sales comprised 64.32 mnt (up 23% q-o-q) and pellet sales were at 8.84 mnt (up 26% q-o-q).

Key updates

• Vale has announced commencement of construction of the Zhongzhai Concentrate Mixing Project in cooperation with the Jiangsu Shagang Group and Ningbo Zhoushan Port Co. Ltd. The project will be constructed by Ningbo Zhoushan Port and is expected to be put into operation in the second half of 2023.
  
  
• Pellet production guidance for CY'22 stands stable at 34-38 mnt.
  
  

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