Vale Sees Surging Q4 Iron Ore Production
Vale Sees Surging Q4 Iron Ore Production

Actionable Trade Ideas

always free

Iron ore pellets close up

Maksym Isachenko/iStock via Getty Images

Vale, listed in the New York Stock Exchange as VALE, discloses a remarkable increase in its Q4 iron ore production. The company’s output soared by an impressive 10.6% from the corresponding period in the previous year, surpassing analyst expectations and propelling annual output beyond its initial estimates.

The production of iron ore in the fourth quarter reached 89.4 million metric tons, significantly outperforming the 83 million-ton average estimate among analysts tracked by Bloomberg. This substantial surge propelled the annual output to 321.2 million tons, surpassing the company’s initial guidance of 315 million tons. The annual output also marked a 4.3% increase from the previous year. Vale attributed this growth to ongoing efforts to enhance asset reliability at S11D, robust performance at the Itabira and Vargem Grande complexes, and higher third-party purchases.

Vale revealed that the average realized price of its iron ore fines in Q4 was $118.3 per ton, which represents a noteworthy 12.6% increase from the previous quarter. Furthermore, Q4 pellets production witnessed an impressive 19% year-on-year surge, reaching 9.9 million tons. This surge substantially boosted the full-year results by 14% to 36.5 million tons, a feat supported by increased pellet feed production at Brucutu.

In addition, the company reported that its nickel production in Q4 experienced a 5.3% year-on-year decline, while copper output skyrocketed by approximately 50%. Over the full year, nickel output decreased by 8% to 164.9 thousand tons, in line with the guidance provided, while copper production witnessed a substantial 29% increase year-on-year, amounting to 326.6 thousand tons, modestly surpassing the company’s revised guidance of 325 thousand tons.

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.