2023-07-19 11:35:24 ET
Vale ( NYSE: VALE ) -0.4% in Wednesday's trading after reporting rising Q2 iron ore production while sales lagged , a gap which also occurred in the previous quarter that the company said should narrow in Q3.
In its latest production and sales report , Vale ( VALE ) said its Q2 iron ore production rose 17.9% Q/Q and 6.3% Y/Y to 78.7M metric tons, helped by the ramp-up of key mining projects including the S11D mine in Brazil.
Q2 iron ore sales jumped 38% Q/Q but gained less than 1% Y/Y to 63.3M metric tons.
Q2 production of iron ore pellets gained 5% Y/Y, driven by higher production at Tubarão plants as a result of higher pellet feed production.
The middling iron ore sales gains Y/Y likely will reduce expectations for Vale's ( VALE ) Q2 earnings, but "also raise concerns around the iron ore market" RBC analysts said.
"It is very unusual for an inventory build in the seasonally strong demand in Q2," which will pressure Vale's ( VALE ) market balances for the rest of the year, or it "will continue to carry record inventory levels," RBC wrote.
Also, Vale's ( VALE ) Q2 nickel production rose 8% Y/Y to 36.9K tons while sales gained 2.5% to 40.3K tons, and copper output jumped 30% to 78.8K tons while sales added 43% to 73.8K tons.
More on Vale:
- Financial and valuation comparison to sector peers
- Analysis: Vale: Moderately Discounted, Compelling Dividends And Buybacks
- Stock price return: Down 14% YTD, up 11% in the past 12 months
For further details see:
Vale reports stronger Q2 iron ore production but flattish sales