Vale S.A. Reports Record Q1 Sales Volumes for Iron Ore, Pellets

Vale S.A (VALE) reported Monday that for Q1, sales volumes for iron ore and pellets were a record, totaling 84.3 metric tonnes, up by 6.4 metric tonnes from the same period last year.

Shares were down more than 1% in recent trading

The company attributed the increase to the company’s flexibility and active management of its supply chain. Vale’s sales mix improved substantially year-on-year, as a result of S11D’s ramp-up and the decision to progressively reduce low grade ore production.

Iron ore production for the quarter reached 82.0 metric tonnes, 4.2 metric tonnes lower than in the same quarter in 2017. mainly due to management’s decision in Q2 in 2017 to reduce production of lower grade ore, reinforcing the positioning of Vale as a premium producer and resulting in higher price realization and better margins since Q1 2017. The more intense rain season also affected production in Q1 2018.

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