Brazil’s Vale increased its iron ore and pellet sales in the first three months of 2018, setting an all-time record for any first quarter. However, iron ore and coking coal production fell both year-on-year and over the last quarter of 2017. The company’s iron ore output target for 2018 remains unchanged.

Vale produced 82 million tonnes of iron ore in Q1. This is down -4.9% on-year and -12.2% on Q4 2017, Kallanish notes from the company's quarterly production report. The reduction was due mainly to Vale’s decision to progressively reduce lower grade iron ore production at the Southern and Southeastern Systems, and due to the impact of a more intense rain season in the period.

Vale’s Q1 iron ore pellet production totalled 12.8mt, up 2.9% on-year but down -0.9% quarter-on-quarter. The on-year improvement was due mainly to the operational start-up of the Tubarão II pellet plant. The company estimates it will restart Tubarão I and São Luís pellet production by the end of Q2 and Q3, respectively.

Iron ore and pellet sales totalled 84.3mt in Q1, or 6.4mt more than in the same period of last year. Iron ore sales represented 71.2mt, while pellets were 13.1mt. Sales volumes increased due to flexibility and active management of the supply chain, Vale claims.