- Production to halt at Sao Luis in Q3 on maintenance
- Sales inch up 17% q-o-q amid portfolio restructuring
Brazilian miner Vale recorded total iron ore production of 83.6 million tonnes (mnt) in Q2CY’25, up sharply by 23.6% from 67.6 mnt in Q1CY’25. The substantial hike was largely due to a recovery from seasonal rainfall, a combination of new assets ramping up, and greater operational reliability.
Meanwhile, production was increased by 3.7% y-o-y compared to 80.6 mnt in Q2CY’24.
Factors boosting output
The sharp rise in production was largely fuelled by strong output from the Brucutu plant, following the commissioning of its fourth processing line, along with a record Q2 performance at S11D.
Northern System production increased by 2.2 mnt y-o-y, marking the highest Q2 output since 2021. The rise was supported by continued performance improvements at S11D and a slight increase at Serra Norte, backed by a flexible, optimised mine plan tailored to current market conditions.
Southeastern System output rose by 2.1 mnt y-o-y, driven by Brucutu’s fourth processing line, with the operations recording their highest production volume since Q3CY’19 and Capanema’s Q2 ramp-up to 0.6 mnt, in line with plans. This was partly offset by expected lower ROM availability at Itabira.
Pellet output inches up
Pellet production stood at 7.9 mnt in Q2CY’25, up by 9.3% q-o-q but declining 11.7% y-o-y. Vale has brought forward preventive maintenance at the Sao Luis pelletising plant to Q3CY’25, resulting in a temporary production halt. As a result, pellet feed originally intended for the plant will be redirected to iron ore fines sales, optimising resource use during the downtime.
Sales jump 17% q-o-q in Q2CY’25
Iron ore sales (including fines, pellets, and ROM) stood at 77.35 mnt in Q2CY’25, higher by 16.9% q-o-q due to a rebound from weather-related shipment disruptions. However, sales edged down by 3.1% y-o-y, as part of the product portfolio optimisation strategy, with ore concentration in China implying longer lead times and the rebuilding of inventories following production and shipment constraints in Q1. Moreover, fines sales surged by 19.2% q-o-q to 67.67 mnt, while those for pellets remained stable at 7.5 mnt. ROM sales, however, were up 15.9% q-o-q.
The average realised iron ore fines price dropped by $5.7/tonne (t) q‑o‑q to $85.1/t, driven by a $5.9/t decline in global benchmark prices. Pellet prices, likewise, fell $6.7/t q‑o‑q to $134.1/t.
CY’25 guidance
- Vale has kept its iron ore production guidance unchanged at 325-335 mnt for CY’25.
- Pellet production guidance has been reduced to 31-35 mnt.
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