Vale sees no signs of a decline in demand on global metals markets – CEO

Brazilian mining company Vale sees no signs of a decline in demand on global metals markets linked to the conflict in the Middle East. This was stated by Chief Executive Officer Gustavo Pimenta in an interview with Bloomberg Television.

Furthermore, Vale has seen its margins increase as the war with Iran has disrupted raw material flows.

As Pimenta noted, the company is focusing on developing its own assets rather than seeking acquisitions. Moreover, global demand for critical minerals has been extremely favourable for Vale.

Disruptions to shipping in the Strait of Hormuz have led to higher fuel prices and freight rates for mining companies such as Vale. This has put pressure on costs, offsetting the rise in prices and volumes during the first quarter.

The company has raised its annual free cash flow forecast for the iron ore business by $1.5 billion to reflect the rise in iron ore prices since the start of the conflict with Iran. Vale expects the average price in 2026 to be $112/t (pre-conflict forecast: $102/t).

Pimenta noted that he is very optimistic about the outlook for the current year. Although China has likely peaked in steel production, Vale sees demand growth increasingly driven by other regions (South-East Asia, Europe, the US). The main driver of growth, in his view, will be India, which is set to double its steel output over the next decade.

Earlier, Vale announced the postponement of the restart of its pellet plant in Oman until the third quarter of 2026 due to the situation in the region, including logistical constraints. According to Pimenta, the resumption of operations will have to wait until the conflict is resolved.

The company is also weighing up whether it makes strategic sense to attempt to develop rare-earth minerals, in particular assessing opportunities in Brazil. However, one of the issues is the ability to compete effectively with well-known international producers.

It is worth noting that in the first quarter of 2026, Vale increased its iron ore production by 3% year-on-year – to 69.7 million tonnes. Pellet production for the period reached 8.2 million tonnes (+13.7% year-on-year) thanks to improved productivity at its Tubarao facilities.