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Brazilian miner Vale is confident it will
manage to meet the top end of its outlook for iron ore production in 2024,
which stands between 310-million and 320-million metric tons, chief executive
Eduardo Bartolomeo said on Friday.
His remarks come after Vale's net profit
tripled in the second quarter from a year earlier, with iron ore sales up 7% in
the period, and as the company tries to soothe market concerns about demand
from top consumer China.
Bartolomeo, who will leave his role at the
end of this year, said the company is making progress in the stability of its
iron ore production and believes that costs are also expected to fall within
expectations for this year.
"Our costs were seasonally higher in
the second quarter, but are on track to reach our guidance for the year,
especially as our product mix and fixed cost dilution improve in the second
half," the executive told a call with analysts.
"Our sales reflect our strong
performance," Bartolomeo said. "And the best is yet to come. We are
really confident on delivering on our strategic guidance."
Vale believes there is support for global
iron ore prices to remain above $100 per ton, as falling below that level would
keep some producers away from the market.
Dalian iron ore futures on Friday snapped a
three-session slide buoyed by fresh stimulus from China to close at $107.45 per
ton, but posted a weekly loss amid concerns about demand from the ailing
property sector.
"We have a positive eye on
China," Vale's head of iron ore solutions Marcello Spinelli said, adding
the Chinese economy is resilient and while the property sector faces a decline,
infrastructure is playing an important role.
"For 2024 and 2025 we are in a good
shape and a balanced market," Pimenta said.
Sao Paulo-traded shares of Vale rose 1.8%
on Friday, while local benchmark stock index Bovespa added 1.4%.