By How Much Has Vale Lowered Its Planned Iron Ore Production?
Vale, the world’s largest iron ore producer, is one of the companies driving the rapid increase in global iron ore production, which in conjunction with subdued demand conditions, has resulted in an oversupply situation. Vale’s S11D iron ore project, which is expected to commence production later this year, will sharply boost the company’s iron ore production in the near term. Despite the prevailing subdued iron ore pricing environment, major iron ore mining companies such as Vale are executing plans to ramp up production, betting on high-cost iron ore miners exiting the market to make the global balance of demand and supply more favorable. Check out our forecasts for Vale’s realized iron ore prices.
Though Vale is going ahead with plans to ramp up production in the near term, it recently lowered its iron ore production guidance by 1.4% and 2.6%, for 2016 and 2017, respectively. The reduction in planned iron ore production indicates the management’s recognition of market realities and an attempt to more closely align production with demand.
Have more questions about Vale? See the links below.
- Vale’s Full Year 2015 Pre-Earnings Report
- Vale’s Q4 2015 Earnings Report: Decline In Iron Ore Prices Negatively Impacts Results
- How Important Is China To Vale’s Iron Ore Sales?
- What Is China’s Share Of Vale’s Overall Revenue?
- What Is Vale’s Revenue & EBITDA Breakdown?
- What Is Vale’s Fundamental Value Based On 2015 Results?
- By What Percentage Has Vale’s Revenue & EBITDA Declined Over The Last 5 Years?
- By What Percentage Can Vale’s Revenue & EBITDA Increase Over The Next 3 Years?
- How Has Vale’s Revenue Composition Changed Over The Last 5 Years?
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