Miner Vale to slow down iron ore production in Q4 due to low prices
(Adds more details from production results)
Oct 19 (Reuters) - Brazilian miner Vale SA said
on Tuesday it was slowing down production of low-margin iron ore
in the fourth quarter by about 4 million tonnes due to low
prices, and could cut back output in 2022 if prices did not
Vale said in a securities filing that iron ore output for
the year is now expected to fall within the lower half of its
target range, currently set at between 315 and 335 million
The miner added that it would reduce its offerings of
low-margin products in 2022 by 12 to 15 million tonnes if the
current scenario did not change.
"Production and sales strategy is based on market
conditions, prioritizing value over volume, with focus on margin
maximization," Vale said.
In the third quarter, Vale said it had produced 89.42
million tonnes of iron ore, about 0.8% more than in the same
period a year earlier.
It also said it had produced 30,200 tonnes of nickel, 22%
less than a year earlier, mostly due to labor disruptions at its
Iron ore prices have fallen sharply from record prices
reached in May following an end to supply constraints and a
weaker demand outlook in China.
(Reporting by Marcelo Rochabrun, Marta Nogueira and Anthony
Boadle; Editing by Richard Pullin)
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