⁍ The world’s second largest iron ore producer increased production by 31% in the quarter compared with the previous three-month period.
⁍ Executives said the company is set to meet the lower end of its 310-330 million tonnes guidance for 2020.
⁍ Vale said it is in talks with trading firm Trafigura to sell its nickel and cobalt operations in New Caledonia.
– Iron-ore prices hit a six-year high in September, but that was thanks in part to a surprising move by Vale, the world’s second-largest iron-ore producer: It held back some of its production in order to rebuild inventories, reports Reuters. The move should help ease a tight global supply of the key steel-making ingredient, and the company’s stock rose almost 3% to 62 reais in Sao Paulo following the quarterly financial results on Wednesday night. The world’s second largest iron- ore producer increased production by 31% in the quarter compared with the previous three-month period. But it surprised the market by holding back part of its output to rebuild stocks, helping to push international iron ore prices to a six-year high in September. In a call with analysts on Vale’s quarterly results, Chief Executive Officer Eduardo Bartolomeo and executive director Marcello Spinelli said recovered inventories in China will give the producer more flexibility on sales going forward. The move should help stabilize the world’s supply and demand for the raw material, they said. Iron-ore future prices have eased in the past weeks with expectations that supply coming from Brazil and Australia, the world’s top iron- ore producers, could recover in the coming months. Vale said it is in talks with trading firm Trafigura to sell its nickel and cobalt operations in New Caledonia, in French Polynesia. The Brazilian miner has been trying for years to sell the loss-making unit, which never reached full capacity and has a history of acid spills.
Source: https://www.reuters.com/article/vale-sa-results/update-2-brazils-miner-vale-expects-stronger-iron-ore-sales-in-q4-idUSL1N2HK2FJ