FILE PHOTO: The logo of Brazilian mining company Vale SA is seen in Brumadinho, Brazil January 29, 2019. Reuters / Adriano Machado / FILE PHOTO
October 19, 2021
(Reuters) – Brazilian miner Vale SA on Tuesday slowed fourth-quarter low-margin iron ore production by about 4 million tonnes due to lower prices than it would in 2022 if prices didn’t rise. Said it can be reduced.
Vale said in a securities filing that annual iron ore production is currently expected to fall in the lower half of the target range and is currently set at 335 million tonnes from 315 million tonnes. ..
The miners said that in 2022, the low-margin product offering will shrink to 12 to 15 million tonnes if the current scenario remains unchanged.
“Production and sales strategies are market-based, focusing on maximizing margin and prioritizing value over quantity,” Vale said.
Vale announced in the third quarter that it produced 89.42 million tonnes of iron ore. This is about 0.8% higher than the corresponding period last year.
He said he produced 30,200 tons of nickel, mainly due to labor unrest at the Sudbury mine. This is 22% less than a year ago.
Iron ore prices fell sharply from record prices in May as supply constraints are lifted and China’s demand outlook has slowed.
(Reported by Marcelo Rochbrunn, Marta Nogueira, Anthony Bodley, edited by Richard Pullin)