- Northern System achieves record third-quarter performance
- Sales inch up 11% q-o-q amid restocking needs
Brazilian miner Vale recorded total iron ore production of 94.4 million tonnes (mnt) in Q3CY’25, up sharply by 12.9% from 83.6 mnt in Q2CY’25.The sharp increase in production, driven by the ramp-up of new assets and improved operational reliability, lifted output to its highest level since 2018 and contributed to stronger price realization during the quarter.
Meanwhile, production was increased by 3.8% y-o-y compared to 90.9 mnt in Q3CY’24.
Factors boosting output
The rise in production was driven by stronger operational performance across all major systems. Northern System output increased by 1.5 mnt y-o-y, reaching a record third-quarter level of 23.6 mnt, supported by continued improvements in asset performance and reliability. This was partly offset by lower, but expected, production at Serra Norte (down 1.5 mnt y-o-y), impacted by ROM availability, partly mitigated by product portfolio adjustments in the mine plan.
Southeastern System output rose by 1.1 mnt y-o-y, driven by the commissioning of Brucutu’s 4th processing line and the Capanema project ramp-up, which reached 2.9 mnt in the quarter, in line with plans. These gains were offset by lower production at the Itabira Complex due to maintenance activities.
Southern System output increased by 1.0 mnt y-o-y, supported by improved performance at the Vargem Grande Complex, aided by the VGR1 project ramp-up and reduced maintenance downtime.
Pellet output edges up q-o-q
Pellet production stood at 7.99 mnt in Q3CY’25, up by 1.9% q-o-q but declining 22.8% y-o-y against 10.4 mnt in the same period last year. 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 inch up 11% q-o-q in Q3CY’25
Iron ore sales (including fines, pellets, and ROM) stood at 85.99 mnt in Q3, higher by 11.2% q-o-q due to a rebound from weather-related shipment disruptions. Moreover, sales edged up by 5.1% y-o-y, as part of the product portfolio optimisation strategy, with ore concentration in China and good booking volumes post Military day parade and pre-holiday restocking.
The average realised iron ore fines price improved by $9.3/tonne (t) q‑o‑q to $94.4/t, driven by a $2.5/t surge in global benchmark prices. Pellet prices, however, fell $3.3/t q-o-q to $130.8/t.
CY’25 guidance
- Vale has kept its iron ore production guidance unchanged at 325-335 mnt for CY’25.
- Pellet production guidance remains stable at 31-35 mnt.
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