In 2024, the company predicts a dense market, especially in Asia

Brazilian mining company Vale expects to reach annual iron ore production of 340-360 million tons by 2026 as it continues expansion projects following recent stabilization. This was announced by the company’s CEO Eduardo Bartolomeo, S&P Global reports.

According to him, key projects are underway to increase production capacity by 15 million tons at Vargem Grande, 15 million tons at Capanema, and 20 million tons at S11D. In the next decade, Vale will also increase the supply of high-quality iron ore pellets from Anglo American’s Brazilian facility in Minas Rio to approximately 15 million tons per year after signing a partnership agreement with the company.

Vale also continues to evaluate the possibility of establishing joint ventures – mega hubs – in the UAE, Saudi Arabia and Oman to produce raw materials for low-carbon steelmaking. In addition, according to Bartolomeo, along with the H2 Green Steel project, the company is also exploring the prospects for creating green steel hubs in Brazil and the United States.

Vale’s Executive Vice President of Iron Ore Marcello Spinelli said that the iron ore market looks favorable and should be very tight in 2024, especially in Asia, as there is increased demand for raw materials both in China and abroad.

«Outside of China, we’re seeing a recovery, with growth expected to exceed 5% in 2024, with some of that growth coming from developing countries, including India, the Middle East and Southeast Asia, as well as Japan and Europe,» Spinelli said.

According to him, on the supply side, the company expects the main growth in iron ore supplies this year to come from Brazil, while supplies from Australia will remain unchanged and India will focus on its domestic market.

In 2023, Vale increased its iron ore production by 4.3% year-on-year – to 321.15 million tons, while sales of raw materials decreased by 1.5% year-on-year – to 256.79 million tons. At the same time, shipments of iron ore pellets increased by 8.1% y/y – to 35.8 million tons in the period under review. In 2024, the company plans to produce 310-320 million tons of ore, while pellet production is forecast at 38-42 million tons.