The conflict in the Mideast Gulf has not affected Brazilian mining group Vale's global iron ore supply, despite logistical hurdles involving its pellet production in the region.
The company redirected its pellet output from Oman to Brazil's southeastern Tubarao unit, it confirmed in April. Halted crude steel production in Iran and hampered pellet feed supply to Bahrain, a key market for the product in the region, led to alternate routes of supply, mostly to Asia and especially China, Vale executive vice president of commercial and business development Rogerio Nogueira said Wednesday during the company's first-quarter earnings call.
But the US-Israel war with Iran has raised iron ore costs by $5-10/metric tonne (t), with some players even going above that margin, Nogueira added.
Vale boosted its iron ore sales in the first quarter, reaching its highest volumes since 2018. Shipments rose to 68.7mn t in the first quarter, up from 66.1mn t a year earlier.
All-in costs for iron ore in the first quarter rose to $55.40/t, up by 8pc from a year prior, despite depreciating exchange rates and high volatility in global oil prices. The result followed stronger premiums in the period and solid freight costs mitigating external pressures, Vale chief executive Gustavo Pimenta said.
Vale posted a profit of $1.94bn in the first quarter, up by 39pc from a year prior.
