Brazil: Vale records highest iron ore production since 2018

• Iron ore sales, pellet output remain stable y-o-y
  
  
• Vale lifts iron ore production guidance for CY'25
  
  

Brazilian miner Vale recorded total iron ore production of 327.67 million tonnes (mnt) in calendar year 2024 (CY'24), up marginally by 2% y-o-y as against 321.15 mnt in CY'23. Production volumes recorded were the highest since CY'18.

Vale's performance in CY'24 was positively impacted by the successful commissioning of Brucutu's fourth processing line, which contributed to the site's highest quarterly production since 2019. The ongoing commissioning of the Capanema project, which aims to add 15 tonnes per year (tpy) of iron ore at the Mariana complex, has further strengthened Vale's production capacity and product diversification. Although maintenance work at the Conceicao 2 plant hindered Itabira's performance, Vale's overall performance was significantly higher y-o-y.

Additionally, S11D achieved a record production of 83 t, driven by an optimised maintenance strategy that enhanced asset availability and operational stability. Meanwhile, Serra Norte's production performance aligned with the established production plan.

However, Vale's iron ore output decreased by 6% to 85.27 mnt in Q4CY'24 as compared to 90.97 mnt in Q3CY'24.

Pellet output remains largely stable y-o-y in CY'24: Pellet output was recorded at 36.89 mnt in CY'24, up slightly by 1% as compared to 36.45 mnt in CY'23. This growth was primarily driven by the performance of the Vargem Grande plant, although maintenance activities in November and December impacted its overall output.

On a q-o-q basis, output fell by 12% to 9.16 mnt in Q4CY'24 as against 10.36 mnt in Q3CY'24.

Iron ore sales inch up y-o-y in CY'24: Vale recorded iron ore (including pellet and ROM) sales at 306.65 mnt in CY'24, which were up by 2% y-o-y as against 300.91 mnt in CY'23. However, iron ore sales dipped by 1% q-o-q to 81.19 mnt in Q4CY'24 as compared to 81.83 mnt in Q3CY'24. This decrease was attributed to portfolio optimisation strategies, which redirected high-silica products to primarily blending and concentration processes at plants in China, in line with prevailing market conditions.

CY'25 guidance

• Vale's iron ore production guidance has been increased to 325-335 mnt for CY'25 from the previous 323-330 mnt.
  
  
• However, its pellet production guidance for CY'25 remains unchanged at 38-42 mnt.