Vale said its Oman pellet plants, which it had halted earlier this year due to the conflict in the Middle East and associated logistics constraints, partially resumed production in late June.
The average realized price for iron ore fines rose 11.6% year-on-year to $95 per ton, but fell 0.8% from the first quarter on "negative impact of pricing mechanisms," according to Vale's output and sales report.
Jefferies' analysts wrote Vale's report was "good enough," citing better-than-expected iron ore production. The main uncertainty, they added, is regarding unit costs.
Citi expects market estimates for Vale's second-quarter EBITDA to move up between 1% and 2% after the report, analyst Alexander Hacking wrote. "These results represent a continued strong start to the year – especially for copper and nickel," he added.
On copper, Vale's production rose 6.3% to some 98,400 tons, with output at the Salobo project in Brazil reaching a record for a second quarter, while the Sossego plant in Brazil, and Voisey's Bay in Canada, also showed improved performance.
Nickel output reached around 42,000 tons, up 4.2%, as higher production at the Brazilian Onca Puma project and a record at Canada's Long Harbour refinery outweighed the impact of a biennial planned maintenance at Canada's Sudbury downstream facilities.
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