In 2024, the company predicts a dense market, mainly in Asia
Brazilian mining company Vale expects to reach annual iron ore production of 340-360 million tonnes by 2026 as it continues expansion projects following recent stabilization. The announcement was made by company CEO Eduardo Bartolomeu , S&P Global reports.
According to him, important projects are underway to increase production capacity by 15 million tons in Vargem Grande, 15 million tons in Capanema and 20 million tons in S11D. Over the next decade, Vale will also increase the supply of high-quality iron ore pellets from Anglo American's Brazilian facility in Minas Rio to approximately 15 million tonnes per year after signing a partnership agreement with the company.
Vale also continues to evaluate the possibility of establishing joint ventures – mega hubs – in the United Arab Emirates, Saudi Arabia and Oman to produce raw materials for low-carbon steelmaking. Furthermore, according to Bartolomeo, along with the H2 Green Steel project, the company is also exploring the prospects of creating green steel hubs in Brazil and the United States.
Executive Vice President of Iron Ore at Vale Marcelo Spinelli said that the iron ore market looks favorable and is expected to be very tight in 2024, especially in Asia, as there is an increase in demand for raw materials in both China and the exterior.
“Outside of China, we are seeing a recovery, with growth expected to exceed 5% in 2024, with some of that growth coming from developing countries, including India, the Middle East and Southeast Asia, as well as Japan and Europe». Spinelli said.
According to him, on the supply side, the company expects the main growth in iron ore supply this year to come from Brazil, while Australia's supply will remain unchanged and India will focus on the domestic market.
In 2023, Vale increased its iron ore production by 4.3% year-on-year – to 321.15 million tons, while sales of raw materials decreased by 1.5% year-on-year – to 256.79 million of tons. At the same time, shipments of iron ore pellets increased by 8.1% year on year – to 35.8 million tonnes in the period under review. In 2024, the company plans to produce 310 to 320 million tons of ore, while pellet production is forecast at 38 to 42 million tons.
