Vale increased iron ore production by 3.7% y/y in Q2

The selling price of ore in April-June was $85.1/t

Brazilian mining company Vale increased iron ore production by 3.7% y/y in the second quarter of 2025 – to 83.6 million tons, according to a company statement.

The growth was mainly driven by a new record quarterly production volume at the S11D mining project in northern Brazil and strong performance at the Brucutu mine.

In the first half of the year, ore production totaled 151.26 million tons, which is almost the same as last year.

Pellet production in April-June totaled 7.9 million tons, down 11.7% compared to the same period in 2024. The company noted that this is in line with the revised forecasts for 2025 (31-35 million tons), taking into account current market conditions. Over six months, pellet production amounted to 15 million tons (-13.4% year-on-year).

Total iron ore sales in the second quarter decreased by 3.1% y-o-y to 77.3 million tons, which was part of a portfolio optimization strategy aimed at prioritizing mid-range products. At the end of six months, the indicator decreased slightly, by 0.1% y-o-y, to 143.48 million tons.

Vale reported that the selling price of iron ore in April-June 2025 was $85.1/t (compared to $98.2/t in the same period last year).

The company kept its annual iron ore production forecast for the current year unchanged, ranging from 325 to 335 million tons.

In July this year, Vale lowered its target for iron ore pellet production for the current year. The company cited the fact that the market is facing oversupply and declining demand for high-quality products.