On yearly basis, the production recorded marginal rise compared to 91.85 MnT in Q2 CY`17. Vale iron ore production in Q2 CY’18 was marked by lower silica and alumina content compared to Q2 CY’17, owing to S11D ramp-up and curtailment of high silica production in southern and southeastern system.
Vale iron ore production guidance for FY`18 remains intact
Vale iron ore production guidance for 2018 remains unchanged at around 390 MnT.
The company is focusing towards high grade ore production, resulting in better margins over volume. The Q2 CY`18 results are in line with the guidance laid by the company, with expected increase in production to over 100 MnT per quarter for second half of CY’18.
Vale pellet production up 5% Y-o-Y in Q2 CY18
Vale`s pellet production recorded at 12.84 MnT in Q2 CY18, in line with the previous quarter at 12.78 MnT. However on yearly basis, pellet production was up 5% against 12.22 MnT in Q2 CY17 mainly due to the restart of Tubarao I and II pellet plant.
Further, Sao Luis pellet plants is expected to restart by third quarter in CY`18, with an expected enhanced production in CY`18.
The pellet production guidance of Vale remains unchanged at 55 MnT.
Iron Ore Production:
| Production | Q2 CY`18 | Q1 CY`18 | Q-o-Q |
| Northern System | 46.21 | 40.6 | 14% |
| Northern and Eastern ranges | 31.89 | 28.92 | 10% |
| S11D | 14.32 | 11.68 | 23% |
| Southeastern System | 27.63 | 22.21 | 24% |
| Itabira | 10.5 | 9.04 | 16% |
| Minas Centrais | 9.37 | 7.76 | 21% |
| Mariana | 7.76 | 5.42 | 43% |
| Southern System | 22.24 | 18.53 | 20% |
| Paraopeba | 7.21 | 6.13 | 18% |
| Vargem Grande | 5.8 | 4.69 | 24% |
| Minas Itabirito | 9.24 | 7.71 | 20% |
| Midwestern System | 0.67 | 0.61 | 10% |
| Corumbá | 0.67 | 0.61 | 10% |
| Total | 96.76 | 81.95 | 18% |
Fig in MnT
Source: Company Reports
Vale recorded highest ever second quarter sales in Q2 CY`18
The company`s iron ore & pellet sales in second quarter CY`18 witnessed at 86.52 MnT, highest Q2 sales since inception, up marginally as against Q1 CY`18 at 84.35 MnT.
The quarterly iron ore sales by the company recorded at 73.29 MnT in second quarter CY`18, up slightly Q-o-Q as against 71.22 MnT in Q1 CY’18. However, on yearly basis the sales increased 6% compared to 69.26 MnT in Q2 CY`17.
Pellet sales in Q2 CY`18 witnessed by the company at 13.23 MnT, almost stable as compared to Q1 CY’18 sales at 13.13 MnT. The sales in Q2 CY`18 recorded 6% increase compared to Q2 CY`17 at 12.48 MnT.