(Bloomberg) — Brazil’s Vale SA iron ore production in the second quarter beat estimates, driven by an output record from its flagship mine in Brazil.
The major iron ore supplier delivered 83.6 million metric tons for the three months ending June 30, it said in a Tuesday report. Analysts tracked by Bloomberg expected the company to deliver 82 million tons of the steel-making ingredient. Output surpassed the year-ago period and the previous quarter.
Vale reached the highest second-quarter output since 2021 at its most-prized operations in Carajas, in Brazil’s Amazon rainforest, including the S11D mine. It also mentioned the ramp up of new assets including a plant in Minas Gerais state, where it has its oldest mines.
Iron ore sales lagged production, Vale said. The Rio de Janeiro-based company has been shifting from a value-over-volume approach by offering a wider range of grades to suit market demand. Steel mill margins have been stressed, so they aren’t always paying a premium to buy higher-quality ore Vale produces.
Iron ore prices lost value after a 2025 peak in mid-February. They started to recover over the past few weeks on signs that supply-side reforms in China may be gaining traction. China’s plan for a mega dam in Tibet also bolstered the outlook for demand.
Vale reported iron ore realized price at $ 85.1 a ton in the quarter. Analysts expect weaker prices and higher costs to offset the seasonally stronger iron ore volumes on the company’s earnings. Vale is set to release financial results on July 31.
The miner kept unchanged its full-year iron ore production guidance of 325 million tons to 335 million tons unveiled in December.
Iron ore still accounts for around 80% of Vale’s revenues, but the company also is a base metals producer with operations in Brazil, Canada and Indonesia. Nickel production rose 44.4% from the same quarter last year, while copper output was 17.8% higher.
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