The company reported a net profit of $1.89 billion for the period, marking a 36% year-on-year increase; however, rising costs put pressure on the market.
During a conference call with company management, it was highlighted that costs increased due to the impact of the war in the Middle East. Vale executives stated that iron ore prices rose by $5 to $10 per ton, pushing the cost curve upward. This development was met with caution by investors.
Vale’s Executive Vice President of Sales and Development, Rogério Nogueira, noted that escalating attacks in the region have negatively affected crude steel production in Iran. However, he emphasized that shipments could be redirected to other customers that continue production.
Meanwhile, steel production in Oman was reported to be continuing steadily thanks to scrap and pellet inventories. In Bahrain, however, the situation was described as more critical. Due to the conflict, deliveries of high-purity iron ore input pellets could not be made, and shipments were redirected to China and other Asian countries, leading to the shutdown of the pelletizing plant in the country.
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