the production of iron ore gives OK (VOUCH3) reached 80.8 million metric tons in the fourth quarter of 2022, shows a report released by the company this Tuesday (31).
The amount represents a drop of 9.9% over the result of the previous quarter and a decrease of 1% compared to the volume recorded in the same period of 2021.
In the quarterly comparison, there was a reduction in production in the Northern System, explained mainly by seasonally higher rainfall levels and the performance of Serra Norte.
In the Southeast and South Systems, production also fell quarter after quarter, with the impact of rains in the region of Minas Gerais.
“In addition, the performance of the Southeast was impacted by the planned maintenance of the Alegria mine equipment, while the results of the Southern System were impacted by lower purchases from third parties”, explained Vale.
analysts of Santander were expecting the company’s production to total 80 million tons in the period. To the Activate Investmentsthe estimate was 83 million tons, reaching the lower range of the guidance for 2022.
In the year, Vale accumulated a production of 307.8 million tons of iron ore, below the projection of 310 million tons of the steel ingredient for 2022. Compared to 2021, the volume fell by 1.6%, explained by:
- licensing delays in Serra Norte; and
- jaspilite overburden processing and operational performance in the S11D.
These factors were partially offset by a continuous ramp-up of production at Vargem Grande, higher production via dry processing at Brucutu and higher purchases from third parties, explained Vale. The company has guidance of iron ore production between 310-320 million tons for 2023.
Fourth-quarter pellet production contracted 8.9% year-on-year to 8.26 million tonnes. Already sales rose 3.6% on the same basis of comparison.
Quarterly sales of iron ore fines were down 0.7% from 2021 but were up 24.2% compared to the third quarter. Nickel sales were up 31.4% qoq, reflecting the conversion of inventories built up in the previous quarter into sales.
Sales of iron ore fines and pellets totaled approximately 90 million tonnes in the fourth quarter. All-in surcharge totaled US$5.40/tonne, up from US$6.6/tonne in Q3, mainly due to lower contractual pellet premiums following record premiums in Q3.
Source: Moneytimes
I am an author and journalist with a focus on market news. I have worked for a global news website for the past two years, writing articles on a range of topics relating to the stock market. My work has been published in international publications and I have delivered talks at both academic institutions and business conferences around the world.
