CEO Gustavo Pimenta stated that disruptions in raw material flows have actually supported margins rather than weakening demand.
Speaking to Bloomberg TV in Rio de Janeiro, Pimenta said that Vale’s growth strategy remains focused on developing its own assets rather than pursuing acquisitions. He emphasized that global demand for critical minerals continues to be very strong, creating a positive outlook for the company.
At the same time, disruptions in the Strait of Hormuz have contributed to higher fuel prices and freight costs. These developments have partially offset the gains generated by stronger prices and production performance during the first quarter.
Following the escalation of tensions involving Iran and the subsequent rise in commodity prices, Vale increased its free cash flow forecast for iron ore by $1.5 billion. The company now expects average iron ore prices to reach $112 per ton for the full year, compared with a pre-conflict forecast of $102 per ton.
Comments
No comment yet.