IRON and STEEL
Vale- world's largest iron ore producer witnessed drop in iron ore and pellet production for first quarter CY19 due to dam failure in Jan'19 resulting in subsequent halt at numerous mines and tailing dams.
The total iron ore production for the quarter stood at 72.9 MnT, down 28% as against 101 MnT in Q4 CY18. On yearly basis, production fell 11% against 82 MnT in Q1 CY18.
Vale pellet production down 23% Q-o-Q
The miner recorded decline in total pellet output for the quarter at 12.2 MnT, down 23% compared to 15.8 MnT in Q4 CY18. On yearly basis, production recorded 5% drop as against 12.8 MnT in Q1 CY18. The drop was owing to operation halt at Fabrica and Vargem Grande pellet plants due to dam rupture and scheduled maintenance at Tubarao and Oman.
Iron ore & pellet sales down 30% in Q1CY19
Vale recorded iron ore sales at 55.4 MnT for Q1 CY19, down 31% on quarterly basis as compared to 80.5 MnT in Q4 CY18. The iron ore sales fell 22% against 71.22 MnT in Q1CY18. The decline in sales is attributed to production stoppage in Jan'19, and rains impacting shipments from the Ponta da Madeira port in the Northern System. Also, new inventory management procedures at Chinese ports impacted sales by reducing port operational capacity.
Pellet sales for the quarter witnessed by the company at 12.3 MnT, down 23% as compared to 16 MnT in Q4 CY18.
The Oman pellet plant production was 2.0 MnT in Q1 CY19, 25% and 11% lower than in Q4 CY18 and Q1 CY18, respectively, due to scheduled maintenance at line A in January and line B in February.
Sales volume contributed 81% of high grade product
Vale's share of premium products (pellets, Carajás, BRBF, pellet feed and sinter feed low alumina) for Q1CY19 stood almost in line with previous quarter at 81%.
Vale's product portfolio for the quarter reached Fe 64.3%, alumina 1.2% and silica 3.5% as against Fe 64.1%, alumina 1.2% and silica 3.9% in 2018.
FY 19 Guidance: Vale reaffirms its iron ore and pellet sales estimate for the year to be at the low to mid-end of 307-332 MnT.