Vale SA plans to lower its iron ore output amid lower prices

October 20, 2021 02:59 PM AEDT | By Arpit Verma

Vale SA plans to lower its iron ore output amid lower prices — Image source: Iron ore mine | Source: © Alfotokunst | Megapixl.com

Iron or tumbles

Falling iron ore prices

The prices of Iron Ore Fine China Import 63.5 percent grade tumbled below US$120 per metric tonne after touching US$129 per metric tonne in the mid of October. The effects of the financial crisis of Chinese property firm, Evergrande remains a threat to industrial metals.

Additionally, the ongoing power shortage in the country is expected to continue into winter while production curbs in the country are already hurting households and companies.

Vale had produced 89.42Mt iron ore in the third quarter, nearly 0.8% higher than the previous corresponding year.

Bottom Line

Vale SA plans to reduce the production of iron ore in the fourth quarter due to the lower prices of the base metal. The miner also stated that it could cut back the output in 2022 if prices of iron ore don’t rise.

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