Vale notches record Q2 iron-ore, pellet output despite trucker strike

23 july 2018

Brazil’s Vale achieved record iron ore and pellet production for a second quarter despite a nationwide trucker strike that paralyzed Latin America’s largest economy in May, the miner said in a filing on Monday.

Vale, the world’s top iron-ore producer, said iron ore output reached 96.755-million tonnes in the period while pellet output hit 12.838-million tonnes, despite the strike over rising diesel prices.

The pickup came after a slip in iron ore production in the first quarter due to heavy rains, and as a campaign in China to cut pollution boosts demand for Vale’s top-quality iron-ore.

Higher quality ore produces more steel for each tonne that is processed, and can reduce emissions as less coke is used in production.

Vale said it also reached a record in sales of iron-ore and pellets for a second quarter, totaling 86.5-million tonnes combined.

The northern system, comprising its Carajás and S11D mines, also reached a record for a second quarter of 46.2-million tonnes, an 11.4% rise over the same period last year, thanks to the S11D ramp-up.

In May, Reuters reported that the company expected its iron-ore output at S11D to reach 58-million tonnes this year, above an official forecast of 50-million  to 55-million tonnes.

The company, also the world’s top nickel producer, said nickel production reached 66 200 t in the second quarter.

The truckers’ strike, which forced unpopular President Michel Temer to cut diesel prices through a mix of subsidies and tax cuts, is expected to cut into results across industries. Consumer products company Unilever reported a related slide in sales in the second quarter.

Source: CREAMER’S MEDIA MINING WEEKLY