Iron ore majors ramp up supply even as China faces challenges
Iron ore is one of the year’s worst performing major commodities, slumping by almost a quarter as China’s property crisis drags on.
Brazilian miner Vale SA posted a 78.2% year-on-year drop in its second-quarter net profit on Thursday, hit by lower prices and landing below analysts’ forecasts.
Vale, one of the world’s largest iron ore miners, posted net income of $892 million, while analysts polled by Refinitiv had forecast a profit of $2.21 billion.
Revenue came in at $9.67 billion, a year on year drop of 13.3%, and slightly missing analysts expectation of $9.98 billion.
Over the quarter, Vale said that prices for its iron ore had averaged $111 per metric ton, down from the $137.9 per ton it reported for the same period last year.
Adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) came in at $3.874 billion, 26.2% down year-on-year.
Last week, the firm reported iron ore output grew 6.3%, while sales of the steel ingredient landed almost in line with the second quarter of the previous year.
(By Peter Frontini and Carolina Pulice; Editing by Isabel Woodford)
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