Vale net profit declines 34 percent in Q2 2026 versus year earlier

Friday, 31 July 2026 20:53:06 (GMT+3)   |   Sao Paulo

The Brazilian miner Vale has posted a net profit of $1.414 billion for the second quarter of 2026, against $2.117 billion for the same period the year before.

Net sales revenues rose 19 percent to $10.498 billion, while production costs increased 20 percent to $7.294 billion. Gross profit rose 18 percent to $3.204 billion, while operational profit increased by 8 percent, reaching $2.155 billion.

In contrast with the increased operational performance, financial expenses and deferred taxes had a combined negative impact of $1.138 billion over the net profit on a year-on-year quarterly basis.

During Q2 2026, Vale's iron ore fines business represented 63 percent of the company's net sales revenues, while iron ore pellets accounted for 10 percent, while other ferrous minerals represented 2 percent. Other areas of Vale, including copper and nickel, amounted to 25 percent.

In terms of destinations, net sales revenues to Asia represented 67 percent of the sales total, of which 50 percent flowed to China, followed by Europe  at 16 percent, South America (9 percent), North America (4 percent), and the Middle East (1 percent), while other destinations accounted for 3 percent.

Sales of iron ore fines in Q2 2026 reached 69.946 million metric tons (mt), while pellets sales reached 7.748 million mt. Run-of-mine operations accounted for 2.053 million mt, Vale said.

The average FOB prices achieved during the quarter were $95/mt for fines and $137/mt for pellets, representing increases of 12 percent and 2 percent, respectively, from Q2 2025.

LuizCompagnoni
Luiz Compagnoni
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I am a retired mechanical engineer, covering the steel industry in Latin America, from iron ore to finished products, over the last 20 years.

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