- Vale Q4 iron ore output dips over 4% q-o-q
- Realised prices improve on stronger global benchmarks
Brazilian miner Vale recorded total iron ore production of 90.4 million tonnes (mnt) in Q4CY’25, lower by 4.2% from 94.4 mnt in Q3CY’25 largely due to seasonal factors and planned maintenance across parts of the system. Despite the q-o-q dip, operational reliability remained strong, with steady performance across the Northern System supporting product quality and shipment consistency. Vale’s iron ore output stood at 336.07 mnt in CY’25, highest since 2018.
Meanwhile, production increased by 6% y-o-y compared to 81.2 mnt in Q4CY’24.
Factors impacting output
Production showed a mixed trend, with gains in the Southeastern and Southern Systems offset by weaker Northern volumes.
Northern System output fell 6.5 mnt y-o-y to 44.8 mnt, impacted by lower ROM availability at Serra Norte and scheduled maintenance at S11D, partly offset by mine plan portfolio adjustments. Despite this, S11D delivered a record 86 mnt in 2025 on stronger operational performance.
Southeastern System production rose 4.4 mnt y-o-y to 23.9 mnt, driven by higher ROM at Brucutu and the Capanema ramp-up, which contributed 3 mnt in line with plan. Full capacity is targeted in Q2.
Southern System output increased 4.6 mnt y-o-y to 13.5 mnt, supported by Vargem Grande (VGR1 ramp-up, Pico) and stronger Paraopeba output at Fabrica and Mutuca.
Pellet output declined 0.8 mnt y-o-y as feed was diverted to fines sales. The Sao Luis pellet plant remained under maintenance.
Pellet output rises q-o-q
Pellet production stood at 8.32 mnt in Q4CY’25, up by 4.1% q-o-q but declining 9.2% y-o-y against 9.17 mnt in the same period last year. Output levels reflect portfolio optimisation in response to prevailing market conditions. Vale advanced preventive maintenance at the Sao Luis pelletising plant into Q4CY’25, leading to a temporary halt. Pellet feed earmarked for the plant was redirected to iron ore fines sales, supporting value maximisation across the product mix.
Sales remain stable q-o-q in Q4
Iron ore sales (including fines, pellets, and ROM) stood at 84.87 mnt in Q4, lower marginally by 1.3% q-o-q. Sales reflected portfolio optimisation and smoother shipments after earlier weather disruptions. Vale focused on higher-margin offerings, pushing medium-grade and blended products like mid-grade Carajás, BRBF and China-based concentrates (PFC), as low-alumina premiums remained soft.
The average realised iron ore fines price improved by $1/t q‑o‑q to $95.4/t, driven by around $4/t surge in global benchmark prices. Whereas the average realised pellet price increased by $0.6/t q-o-q, totaling $131.4/t as global prices rose by $4.4/t q-o-q to $129.0/t.
CY’26 guidance
- Vale has released its iron ore production guidance to 335-345 mnt for CY’26.
- Pellet production guidance set at 30-34 mnt.
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