Brazilian miner Vale said on Tuesday that it slowed its low-margin iron ore production by around four million tons in the fourth quarter due to lower prices, and could cut production in 2022 if prices do not increase.
Vale said in a securities filing that iron ore production for the year is expected to fall into the lower half of the currently set target range of 315 to 335 million tons.
The miner added that if the current scenario does not change, it will reduce its low margin product offers to 12 million to 15 million tons in 2022.
“The production and sales strategy is based on market conditions that prioritize value over volume, with a focus on margin maximization,” Vale said. Said.
In the third quarter, Vale said it produced 89.42 million tons of iron ore, which is about 0.8% more than in the same period of the previous year.
He also said it produced 30,200 tons of nickel, 22% less than a year ago, mostly due to job cuts at the Sudbury mine.
Iron ore prices fell sharply from the record prices reached in May after the end of supply constraints in China and the weakening demand outlook.
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