News Global Market Vale 31 October 2022
Weak operating results mainly reflect falling iron ore prices
Brazil’s Vale Corporation, one of the largest iron ore producers in the world, posted a net sales of $4.46 billion in the third quarter of 2022 compared to $4.09 billion in the previous quarter. SteelOrbis informs about it.
Compared to the third quarter of 2021, net revenues fell by 18.1%. Net sales income in the third quarter fell by 19.2% y/y – to $9.93 billion.
The weaker operating results, according to the company, mainly reflect falling iron ore prices. Vale’s iron ore realized price was $92.6 per metric ton in the third quarter, compared to $127.20 in the same period in 2021.
Earlier, Rio Tinto Group and BHP Group noted that producers of iron ore for the steel sector will be affected by global economic uncertainty and the situation in the Chinese market.
In the third quarter of 2022, there was a slowdown in demand for iron ore. Offer on the world market is expected to increase in the 4th quarter. In particular, Vale and Rio Tinto announced plans to increase production and shipments in order to achieve annual forecasts during the specified period.
As GMK Center reported earlier, Vale, in January-August 2022, reduced iron ore exports by 17.3% compared to the same period in 2021 – to 147.1 million tons. Sales of the company in the domestic market of Brazil in August 2022 increased by 19.6% year on year – up to 1.89 million tons.