Brazil: Vale's iron ore production rises 6% y-o-y in Q2CY23; guidance intact

Brazilian miner Vale has logged an increase of 6.3% y-o-y in iron ore production in Q2CY'23 (April- June 2023) due to stronger performance at S11D and better weather conditions in Minas Gerais. Meanwhile, pellet production increased 5% y-o-y in the quarter on higher production at Tubarao plants as a result of higher pellet feed production.

Highlights

• Iron ore production was recorded at 78.74 mnt in Q2, an increase of 6.3% y-o-y compared to 74.10 mnt in Q2CY'22. Output increased by 17.9% q-o-q as against 66.77 mnt in Q1.
  
  
• Iron ore sales stood at 63.32 mnt in Q2, up 0.9% y-o-y compared to 62.76 mnt in Q2CY'22. Sales increased by 38.1% q-o-q as against 45.86 mnt in Q1CY'23.
  
  
• Pellet output was recorded at 9.1 mnt in Q2, up by 5.1% y-o-y as against 8.6 mnt in Q2CY'22. Production rose by 9.5% q-o-q compared to 8.3 mnt in Q1CY'23.
  
  

Other highlights

• Vale's iron ore production guidance remains intact at 310-320 mnt for CY'23.
  
  
• Pellet production guidance for this year has been set at 36-40 mnt.