Vale, one of the world's largest miners, now expects iron ore output for the year to be between 310-million tonnes and 320-million tonnes, down from a previous estimate of 320-million tonnes to 335-million tonnes.
The drop partially reflects Vale's April agreement to sell its manganese and iron-ore mines in central Brazil, with an enterprise value of about $1.2-billion, to holding company J&F Investimentos.
But the miner said the reduction was also "to account for greater flexibility in our production due to current market conditions", as iron ore prices retreat from 2021 highs in light of risks of lower demand from major buyer China.
"Vale recorded a quarter with numbers that mostly disappointed our forecasts," said Ativa Investimentos analyst Ilan Arbetman, adding that most of the downside was already reflected in Vale shares, which are down some 20% since the beginning of June.
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