Vale Posts Largest Q2 Iron Ore Output Since 2018 as Realized Prices Climb 11.6%

Q2 production hits highest level since 2018

Brazilian miner Vale reported iron ore production of 84.3 million metric tons in the April-June period, its highest second-quarter figure since 2018. Output rose 0.8% from a year earlier and exceeded the Visible Alpha consensus estimate of 82.2 million tons. Vale said the result was supported by a record-breaking second quarter at its S11D Complex plus additional volumes from the Capanema and VGR1 projects, all located in Brazil.

Sales and pricing trends

Iron ore sales rose 3.1% during the quarter on higher production and stockpile drawdowns, versus an analyst estimate compiled by Visible Alpha of 78.2 million tons. Vale said the increase reflected sales of fines, pellets and run-of-mine material. The average realized price for iron ore fines climbed 11.6% from a year earlier to $95 per ton, though it slipped 0.8% versus the first quarter due to what Vale described as the "negative impact" of pricing mechanisms.

Analyst reaction

Jefferies described Vale's operational results as "good enough," according to a July 22 report.

Guidance and upcoming financial results

Vale maintained its 2026 production guidance of 335 million to 345 million tons, along with other annual output estimates. The company is scheduled to release its second-quarter financial results on July 30.