At Vale Day New York 2017 held on December 6, Peter Popinga, Vale's executive director, ferrous minerals and coal, said that Vale is increasing its pellet production to respond to strong market demand, adding that the restart of the São Luis and Tubarão I/II pellet plants is scheduled for the first half of 2018, with annual production capacities of 7.5 million mt and 6.2 million mt respectively. Vale’s total pellet production amounted to 46 million mt in 2016 and is expected to reach 50 million mt in 2017 and 55 million mt in 2018, he stated.
“Exports in China are falling. Demand is good. So supply and demand of iron ore is balanced. While saying that, we are expecting 60 million mt of new seaborne ore to enter the market next year net, out of which 25 million mt will be from Vale. But we see also 25 million mt of domestic iron ore coming out, which gives you a 35 percent net increase probably. And this is one percent of global steel production, which is still going up. So it's very balanced. So I have no reason to believe that iron ore prices for next year will actually be much different from those prices we have seen this year,” said Popinga, responding to a question on whether iron ore prices could rise above $65/mt in the coming year.