Vale SA, the world’s biggest iron-ore miner, reported second-quarter output that beat analysts’ estimates, keeping a new annual production record in sight.
Iron-ore output was 86.8 million metric tons including third-party purchases, the Rio de Janeiro-based company said Thursday in a statement. Vale was expected to produce 86 million tons, according to the average estimate of five analysts surveyed by Bloomberg.
Iron-ore output slipped from a second-quarter record 89.3 million tons a year earlier. Last year’s numbers excluded output from Vale’s Samarco joint venture, which has been shut since a deadly dam breach in November.
Vale’s expansion goals in the face of a global supply glut appear highly attainable as the company plans to ramp up production of the industry’s biggest development project, the S11D mine in Carajas, in the second half.
Benchmark iron ore with 62 percent content rose 2.6 percent to $57.17 a dry metric ton on Thursday, according to Metal Bulletin Ltd. data. It touched $70.46 a ton on April 21, the highest since January 2015. Iron ore may drop to $40 a ton in the fourth quarter, according to Goldman Sachs Group Inc., while Morgan Stanley’s outlook for the same period is $35.
After producing record levels of industrial metals last year, Vale reported nickel output of 78,500 tons in the second quarter, up 17 percent from a year earlier. Copper output was 107,400 tons, up 2.4 percent from a year earlier.
Vale is scheduled to release its earnings report before the start of regular trading on July 28.
Source: BloombergPrevious Next