São Paulo – Vale sold less iron ore and pellets to the Middle East in Q3 of this year over the same period of last year. Data made public by the company this Thursday (27) shows that the region was the destination for 2.27 million tons from July to September of 2016 against 2.4 million tons in the same period of 2015, a decline of 5.2% in this comparison.
But if compared to Q2 of this year, when the company exported 2.23 million tons to the Middle East, the results show an increase of 2%. The region received 2.6% of the total output of iron ore and pellets of the company, the same percentage of Q2, but below the 2.8% from July to September 2015.
In addition to exporting to the Middle East, Vale also holds operations in the region: an iron ore pellet plant and a distribution hub in the city of Sohar, Oman. In the Arab country, the company produced 2.3 million tons in pellets in Q3, a decline of 1% in volume over the same period of 2015, but an increase of 25.7% over Q2 of this year.
In its business report on the period, Vale mentions the output increase in Oman over Q2 of this year and states that total output is “in line” with Q3 of last year due to maintenance stops. The company says that the pellets plant reached an output monthly record in July.
In the Q3 report, Vale highlights its solid operational performance, with a record in iron ore output: 92.1 million tons. The price increase of the commodity drove Vale to also post good financial results. Net revenues totaled BRL 23.7 billion, an increase of 2% over Q3 of last year. The company registered a net profit of BRL 1.8 billion against losses of BRL 3.3 billion from July to September of 2015.
In dollars, Vale’s net revenues stood at USD 7.3 billion in Q3 of this year, an increase of 13% over the same months of last year. Net profit was USD 575 million against losses of USD 2.1 billion in the same comparison. Overall exports by the company went up 6% comparing Q3 of this year and of the previous year, from USD 3.3 billion in 2015 to USD 3.5 billion in 2016.
The iron ore price surged 5.4% over Q3 of last year and 6.7% over Q2 of this year, as assessed by the Platts IODEX 62% rates. According to Vale, that was due to continuous investments by the market in fixed assets in China and more positive expectations over the real estate market of the Asian country, a sign that it’s keeping investment levels stable with new and ongoing construction works and keeping a solid demand for steel. The company expects the ore market to remain stable, with a seasonal reduction the only oscillation until the end of the year.
*Translated by Sérgio Kakitani
