Vale reducing supply of weaker quality iron ore in Q4

Wednesday, 20 October 2021 23:51:56 (GMT+3)   |   Sao Paulo

Brazilian miner and iron ore producer Vale plans to reduce the supply of weaker quality iron ore in Q4 this year to focus on “value over volume,” the company said on Wednesday. Vale said its “value over volume” strategy will focus on higher margins.

The company will reduce the supply of high silica iron ore by 4 million mt in Q4 this year amid a sluggish demand for this product. Despite the reduced iron ore supply, Vale said it won’t change its guidance of 315-335 million mt for 2021, but should bring the company’s assumptions to below the middle part of its guidance.

“If such scenario persists, we should also reduce the supply of weak margin products in 2022 by 12-15 million mt. The level of iron ore purchases from third-party companies could also be adjusted,” the company said.

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