Yesterday, Vale reported Q4 iron production of 82.47 MMT, which is down 7.8% QOQ and up 2.4% YOY. Vale’s iron ore production totaled 315.6 MMT in 2021, up 5.1% YOY and in the lower end of its 315-335 MMT guidance. In percent of production, Vale’s Q4 iron ore sales amounted to 101%, well above Q3 2021 and Q4 2020 of 76% and 98%, respectively. Total sales for 2021 came in at 277.5 MMT, up 8.9% from 254.9 MMT in 2020. Vale still expects to reach 370 MMTPA of production capacity by the end of 2022, which compares with 315 MMT in 2021 and suggests a continued recovery from current levels.
 
On a positive note, Minas Gerais has already resumed full operations following the heavy rains of early 2022. According to Vale, the stoppages saw only an impact of 2 MMT on Vale’s overall operations and will therefore not impact its iron ore production guidance for 2022 of 320-335 MMT. Furthermore, the guidance would suggest a quarterly production of c82 MMT, compared to average quarterly production of 79 and 64 MMT for 2021 and 2020, respectively.