Vale posts largest second-quarter iron ore output since 2018

 Brazilian miner Vale (NYSE: VALE) posted on Tuesday its largest second-quarter output figure since 2018, with production of the steelmaking material rising 0.8% from a year earlier and coming above analysts’ estimates.

Vale, one of the world’s largest iron ore producers, reported iron ore output of 84.3 million metric tons for the April-June quarter, above a Visible Alpha consensus of 82.2 million tons.

The miner said iron ore production in the period was supported by a record second-quarter performance in its S11D complex, and additional volumes from Capanema and VGR1 projects, all of them located in Brazil.

Vale maintained its projection of producing between 335 million and 345 million tons of iron ore this year, while also keeping its other yearly output estimates unchanged.

Iron ore sales, which include fines, pellets and run-of-mine, stood at 79.7 million tons in the quarter, a 3.1% rise reflecting higher output and sale of stocks, Vale said. Analysts expected 78.2 million tons, according to estimates compiled by Visible Alpha.

The average realized price for iron ore fines rose 11.6% year-on-year to $95 per ton, but fell 0.8% from the first quarter on “negative impact of pricing mechanisms”, according to Vale’s output and sales report.

Vale is set to release second-quarter financial earnings on July 30.

(Reporting by Andre Romani in Sao Paulo and Marta Nogueira in Rio de Janeiro; Editing by Chris Reese and Natalia Siniawski)