Brazilian iron ore mining company Vale reported net profits of $1.88 billion for the first quarter of 2023, compared to $4.48 billion in the same period in 2022 and $3.74 billion in the fourth quarter of 2022.

Compared to the fourth quarter of 2022, net sales revenue decreased by 29.4% to $8.43 billion, production costs decreased by 30.8% to $4.95 billion, gross profit decreased by 27.2% to $3.49 billion, and operating profit decreased by 17.5% to $2.88 billion.

Looking at sales destinations, 7.7% were to North America, 12.7% to South America, 56.0% to Asia, of which 40.4% were to China, 18.5% to Europe, 2.8% to the Middle East and 2.2% to other regions.

In combined iron ore and pellets sales, 10.15 million tonnes were directed to the Americas, 38.06 million tonnes to Asia, 5.17 million tonnes to Europe, 1.24 million tonnes to the Middle East and 1.04 million tonnes to other regions.

According to the Company, the declining result mainly reflects lower prices of iron ore and pellets and lower sales of iron ore during that period.

Iron ore and pellets sales during the first quarter of 2023 to Vale were equivalent to 76% of its sales revenue.