Brazil: Vale reports strong Q3 performance, revises iron ore production guidance for CY'24

• Iron ore output rises
  
  
• Sales edge up too
  
  

Brazilian miner Vale recorded total iron ore production of 90.97 million tonnes (mnt) in Q3CY'24, up by 13% from 80.60 mnt in Q2CY'24. Accordingly, the company has raised its CY'24 production guidance for the same to 323-330 mnt.

This rise has been attributed to S11D's, Itabira's, and Brucutu's strong performance. Meanwhile, shipments from the Ponta da Madeira Port hit a quarterly high since 2021, totalling 50.6 mnt, driven by improved operational stability.

The Conceicao 1 and 2 plants in Itabira experienced enhanced performance due to reduced maintenance downtime, as most such activities were concentrated in the first semester during the rainy season. Additionally, Brucutu reported higher output, driven by the resumption of three wet processing lines last year and the commissioning of a fourth line in September this year. This enabled the site to achieve its highest quarterly production since 2019.

On a y-o-y basis, iron ore output increased by around 6% compared to 86.24 mnt in Q3CY'23. Meanwhile, in 9MCY'24 (January-September 2024), iron ore output rose by 5% to 242.39 mnt as against 231.76 mnt in the same period last year.

Pellet output rises 17% q-o-q: Pellet output was recorded at 10.36 mnt in Q3CY'24, up 17% compared to 8.90 mnt in Q2CY'24. On a y-o-y basis, output increased by 13% as against 9.17 mnt in Q3CY'23. Meanwhile, in 9MCY'24, output rose 4% to 27.72 mnt as against 26.60 mnt in the corresponding period last year (CPLY). Pellet production rose due to higher pellet feed availability from the Brucutu and Itabira mines, boosting pellet output at the Tubarao site.

Iron ore sales up q-o-q: Vale recorded iron ore sales at 81.84 mnt in Q3CY'24, up marginally by 3% as against 79.79 mnt in Q2CY'24. Meanwhile, iron ore sales increased by 2% y-o-y compared to 80.56 mnt in Q3CY'23. In 9MCY'24 too, sales rose by 7% to 225.46 mnt as against 210.59 mnt in the year-ago period. Sales increased following the higher pellet production and increased demand in the quarter under review.

CY'24 guidance

• Vale increased its iron ore production guidance to 323-330 mnt for CY'24 from the previous 310-320 mnt.
  
  
• However, its pellet production guidance for CY'24 remained intact at 38-42 mnt.