Brazil : Vale Iron Ore Production Drops 12% Q-o-Q in Q1 CY'18
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Vale, the world's largest iron ore producer reported decline in Q1 CY'18 iron ore production. The production was recorded at 81.95 MnT, down 12% Q-o-Q as against Q4 CY'17 at 93.36 MnT. The decline in production is owing to reduction in low grade ore production besides intense rainy season.
On yearly basis, the production recorded marginal decline compared to 86.2 MnT in Q1 CY'17.
Vale iron ore production guidance for FY'18 remains intact
Vale iron ore production guidance for 2018 remains unchanged at around 390 MnT.
The company is focusing towards high grade ore production, re-enforcing it as premium producer resulting in better margins over volume. The Q1 CY'18 results are in line with the guidance laid by the company.
Vale pellet production up 3% Y-o-Y in Q1 CY18
Vale's pellet production was recorded at 12.78 MnT in Q1 CY18, in line with the previous quarter at 12.89 MnT due to postponements of some scheduled maintenance stoppages from Q4 CY17 to Q1 CY18. However on yearly basis, pellet production was up against 12.42 MnT in Q1 CY17 mainly due to the restart of Tubarao II pellet plant. Further, Tubarao I and Sao Luis pellet plants are expected to restart by second and third quarter respectively in CY'18, with an expected enhanced production in CY'18.
The pellet production guidance of Vale remains unchanged at 55 MnT.
Iron Ore Production:
| Production | Q1 CY'18 | Q4 CY'17 | Q-o-Q |
| Northern System | 40.60 | 46.68 | -13% |
| Carajas | 28.92 | 38.96 | -26% |
| S11D | 11.68 | 7.73 | 51% |
| Southeastern System | 22.21 | 26.04 | -15% |
| Itabira | 9.04 | 10.33 | -13% |
| Minas Centrais | 7.76 | 8.46 | -8% |
| Mariana | 5.42 | 7.25 | -25% |
| Southern System | 18.53 | 20.00 | -7% |
| Paraopeba | 6.13 | 6.36 | -4% |
| Vargem Grande | 4.69 | 5.03 | -7% |
| Minas Itabirito | 7.71 | 8.60 | -10% |
| Midwestern System | 0.61 | 0.64 | -5% |
| Corumba | 0.61 | 0.64 | -5% |
| Total | 81.95 | 93.36 | -12% |
Fig in MnT
Source: Company Reports
Vale recorded highest ever first quarter sales in Q1 CY'18
The company's iron ore & pellet sales in first quarter CY'18 witnessed at 84.3 MnT, highest Q1 sales since inception, up 8% as against Q1 CY'17.
The quarterly iron ore sales by the company recorded at 71.2 MnT in first quarter CY'18, a decline of 11% Q-o-Q as against 80 MnT in Q4 CY'17. However, on yearly basis the sales increased 9% compared to 65.3 MnT in Q1 CY'17.
Pellet sales in Q1 CY'18 witnessed by the company at 13.1 MnT, down marginally as against 13.6 MnT in Q4 CY'17. The sales in Q1 CY'18 recorded marginal increase compared to Q1 CY'17 at 12.6 MnT.
