Vale Reduces 2019 Pellet Production Guidance to 45 MnT
Vale- world's largest iron ore producer witnessed drop in iron ore and pellet production for second quarter CY19 as a consequence of dam failure in Jan'19 resulting in subsequent halt at numerous mines and tailing dams.
The production was also affected due to unusual weather in Northern system in April and early May.
Vale pellet production down 25% Q-o-Q
The miner recorded decline in total pellet output for the quarter Q2 CY19 at 9.1 MnT, down 25% compared to 12.2 MnT in Q1 CY19. On yearly basis, production recorded 29% drop as against 12.8 MnT in Q2 CY18. Vale pellet production suffered a setback due to stoppage at Southern system pellet plants, abnormal rain in the Northern and Southeastern Systems as well as maintenance carried out at the Tubarão plants.
The miner has resumed operations at its Brucutu mines in June’19, recovering 30 MnT of production capacity. However, regarding the 60 MnT currently curbed, the miner expects 30 MnT of dry processing production to resume towards end of CY19 and the remaining 30 MnT, which includes wet processing, is estimated to return in about two to three years.
Vale sales up amid resumption at Brucutu mines
Vale total iron ore and pellet sales picked up 4% to 70.7 MnT as compared to 67.7 MnT a quarter ago.
Vale recorded iron ore sales at 61.9 MnT for Q2 CY19, up 12% on quarterly basis as compared to 55.4 MnT in Q1 CY19. The rise in sales is attributed to increase in shipments in Northern systems and resumption at Brucutu mines.
However, the pellet sales witnessed drop Q-o-Q to 8.8 MnT against 12.3 MnT in last quarter. On yearly basis, pellet sales fell 33% compared to 13.2 MnT in Q2 CY18.
Sales volume contributed 86% of High grade product
Vale’s share of premium products (pellets, Carajás, BRBF, pellet feed and sinter feed low alumina) for Q2CY19 picked up to 86% as against 81% in previous quarter.
In Q2 CY19, Vale’s product portfolio Fe content reached 64.8%, alumina 1.2% and silica 3.1% as against Fe 64.3%, alumina 1.2% and silica 3.5% in last quarter.
CY19 Guidance:
--Vale kept the sales guidance at 307 MnT- 332 MnT and informs that its current sales volume will be observed towards midpoint of the range.
--Vale reviewed its pellet production guidance at 45 MnT against 60 MnT announced on Vale day.
source: SteelMint
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