China: Iron Ore Index Jumps After Vale Cuts Sales Estimate

Spot iron ore fines Fe 62% index has today jumped by almost USD 3.2/MT against yesterday and closed today at USD 87.05/MT, CNF China.

Vale informed yesterday on its estimate on its iron ore sales volume for 2019 between 307 and 332 MnT. This is lower by 75 MnT against its previous estimated forecast.

Vale's total iron ore production witnessed at 384.6 MnT (up 5% Y-o-Y) and pellet production recorded at 55.3 MnT (up 10% Y-o-Y) in CY18. The ramp-up of Tubarao I, Tubarao II pellet plant, restart at Tubarao IV & Sau luis plant in Q3CY18 resulted in increased pellet production for CY18.

Vale recorded iron ore sales at 308.99 MnT, rise of 6% on yearly basis as compared to 291.35 MnT in CY17. The iron ore sales for Q4CY18 recorded at 80.5 MnT, down 4% against 83.98 MnT a quarter ago. Pellet sales in CY'18 witnessed by the company at 56.59 MnT, up 9% as compared to 51.78 MnT in CY17.