TBA GroupSailors SocietyPort of StocktonPort of South LouisianaTOC EventsTelestack
  • Vigan
  • Cimbria
  • Port of South Louisiana
  • The Wolfson Centre for Bulk Solids Handling Technology
  • Cleveland Cascades Ltd
  • Telestack

Vale iron fines shipments improve

Vale iron fines shipments improve

(Posted on 31/07/19)

Vale iron ore fines production and sales showed a substantial improvement in the end of 2Q19 with the increase in shipments in the Northern System and the resumption of Brucutu operations. The combined effects of both events will be felt more considerably in 2H19.

Iron ore fines production totaled 64.1 Mt in 2Q19, 12.1% and 33.8% lower than 1Q19 and 2Q18, respectively, mainly as a result of the impacts following the Brumadinho dam rupture and the unusual weather-related conditions in the Northern System in April and early May.

As a result of the successful S11D ramp-up, the Northern System achieved a run rate of 215 Mtpy in June and expects to produce around 18.5 Mt to 19.0 Mt per month in 2H19 reaching the 230 Mtpy run rate.

Vale's pellet production[2] totaled 9.1 Mt, 25.5% and 29.3% lower than in 1Q19 and 2Q18, respectively, mainly due to the full stoppage of the Southern System pellet plants during the quarter, following the Brumadinho dam rupture, abnormal rain in the Northern and Southeastern Systems as well as maintenance carried out and at the Tubarão plants.

Vale made substantial progress concerning the 93 Mtpy of Iron Ore production capacity stopped in 1Q19, with the resumption of Brucutu operations on June 22nd, recovering 30 Mtpy of production capacity. Regarding the 60 Mtpy currently curbed, Vale expects that the 30 Mtpy of dry processing production will be gradually resumed starting by the end of this year and the remaining 30 Mtpy, which includes wet processing, is estimated to return in about two to three years.

Iron ore fines and pellet sales volume was 70.8 Mt in 2Q19, 4.5% higher than in 1Q19 and 18.2% lower than 2Q18. Although the production volumes decreased quarter over quarter, sales volumes increased 3.2 Mt due to the consumption of offshore inventories. 

As a result of the Brucutu mine restart, Vale reaffirms its 2019 iron ore and pellets sales guidance of 307-332 Mt, as previously announced, and informs that its expected sales volume will move towards the midpoint of the range.

Following the Brumadinho accident, there was a shortage of products to be loaded in the Southern and Southeastern Systems, and therefore a major share of scheduled vessels was redirected to the Ponta da Madeira port in the Northern System. However, the heavy rains in March, April and early May impacted port productivity and loading operations. Therefore, the line-up of ships at the Ponta da Madeira port increased substantially and the consequence was a considerable impact on demurrage costs in 2Q19, thus impacting the C1 cash costs. The São Luís port stay of the ship went from 6 days in January to the peak level of 32 days in May. The issue is being normalized with the July estimate for port stay of the ship at 7 days. 

Latest News

Partnership for renewable solar power at RBM

(Posted on 06/10/22)

Richard’s Bay Minerals (RBM) will be supplied with renewable solar power through an agreement... Read more


Tomaschewski to lead Asia region at Possehl Erzkontor

(Posted on 01/10/22)

Lübeck-based end-to-end service provider for raw materials Possehl Erzkontor, has appointed Nicol... Read more


Rio Tinto starts Quebec lithium concentration plant

(Posted on 01/10/22)

Rio Tinto has started producing spodumene concentrate, a mineral used in the production of lithium for... Read more


Amogy and Trafigura to research ammonia cracking technology

(Posted on 25/09/22)

Amogy Inc., a pioneer of emission-free, energy-dense ammonia power solutions, and Trafigura, one of... Read more


Rio Tinto and Shougang Group explore steel decarbonisation

(Posted on 25/09/22)

Rio Tinto and Shougang Group, one of the world’s top 10 steel producers, have signed a Memorandum... Read more


Rio Tinto partners Volvo for low-carbon and autonomous solutions

(Posted on 15/09/22)

Rio Tinto and Volvo Group have signed a Memorandum of Understanding (MoU) to create a strategic partnership... Read more


Emergency measures required now to avert European steel crisis

(Posted on 09/09/22)

The European steel industry has called on EU policymakers to provide immediate relief against high energy... Read more


Europe’s fertilizer industry victim of energy chaos

(Posted on 07/09/22)

Rocketing gas prices have led to curtailment or shutdown of a majority of European fertilizer production... Read more


Cargill launches Asia Pacific digital studio to accelerate food/ag innovation

(Posted on 07/09/22)

Cargill is partnering with the Singapore Economic Development Board (EDB) to launch its first digital... Read more


Tata and Punjab Government to set up scrap based EAF steel plant

(Posted on 03/09/22)

Tata Steel has signed a Memorandum of Understanding (MoU) with the Government of Punjab for setting... Read more


Cleveland Cascades LtdThe Wolfson Centre for Bulk Solids Handling Technology Bühler GmbHCimbriaViganVan Aalst
  • TOC Events
  • Van Aalst

Subscribe to our newsletter

Keep up to date with the latest global news in bulk cargo handling and shipping