Vale’s Q3 profit lower than estimate due to iron ore prices down
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Update time : 2022-10-31 20:22:25
The Brazilian mining giant Vale SA saw a lower-than-expected profit due to a slump in iron ore prices and long-lasting inflation.
The company posted its third-quarter adjusted earnings before items of US$3.7 billion, which dropped by 47% year on year and missed an earlier estimation of US$4.6 billion.
Vale now focuses on higher-quality ore to secure margins from the lowest iron ore prices in two years. However, it has raised concerns about the cooling market due to the impact of higher interest rates, Covid-19 lockdowns in China, and real state problems.
The competitors of Vale, Rio Tinto, and BHP Group also sent warnings that commodity producers could face challenges of global economic uncertainties and patchy recovery in China. The world’s largest steelmaker, Baoshan Iron & Steel Co. also said the expectation of the country’s demand will decline by 5% this year.
However, Vale saw a recovery in nickel and copper production and the company will focus more on the metals business.
