Vale, the world’s largest iron ore producer, has recorded a production of 88.2 MnT iron ore in Q3 2015, according to recent published quarterly result report. Production rose by 2.9 MnT against 85.7 MnT last year. The company’s total iron ore production during a period of Jan-Sept’15 was 248 MnT.
During Q3, the company had shutdown few of its less efficient benefication plant’s operations at various locations like Feijo, Jangada etc, whose total annual capacity were equivalent to 13 MnT. But, productivity raise in other operational areas compensated for the total output raised.
Despite production cut at some benefication plants, the company is likely to meet its production target of 340 MnT in 2015.
World’s top three iron ore producers viz Vale, Rio Tinto and BHP are on the track to raise their production with more low cost output. More inflow of low cost output has led to oversupply of iron ore, but low demand will clearly result in a glut, which will push global prices further.
It is anticipated that in the coming time, global iron ore prices may touch to USD 40/MT due to supply glut by various iron ore top producers.
In addition, Vale’s pellet production also rose by 7% Y-o-Y to 12.2 MnT in Q3 2015 against 11.4 MnT at the same consecutive period last year. The company produced 35.8 MnT pellets during Jan-Sept’15; up by 14.4% Y-o-Y.
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