Brazilian mining company Vale beat analysts’ expectations for iron ore production in the second quarter of 2025, driven by record performance from its flagship mine in the Amazon.
The company announced in a report released Tuesday that it produced 83.6 million metric tons of iron ore during the three months ending June 30, exceeding analysts’ expectations of 82 million tons, according to Bloomberg. Production exceeded both the previous quarter and the same period last year.
The company recorded its highest quarterly production since 2021 at its strategic operations in the Carajas region of northern Brazil, including the S11D mine located in the Amazon rainforest.
It also noted increased production at new assets, including a plant in Minas Gerais, where the company’s oldest mine is located.
Pressure on Steel Margins
Despite higher production, Vale reported that iron ore sales lagged behind production, as the company continues its strategy of diversifying raw material grades to meet market demand, rather than focusing solely on volume.
The global steel industry is facing margin pressure, making steelmakers less willing to pay premiums for the higher-quality raw materials produced by Vale.
Iron ore prices have declined since peaking in February 2025, but have begun to recover in recent weeks, supported by signs of successful supply-side reforms in China, along with Beijing’s announcement of a mega-dam project in Tibet, which has boosted expectations of improved demand.
The company reported an effective price of $85.1 per ton during the quarter. Analysts expect weaker prices and higher operating costs to negatively impact earnings, despite seasonally improved production volumes. Vale is scheduled to announce its financial results on July 31.
Growth in Base Metals
Vale maintained its 2025 iron ore production forecast within the range announced in December of 325 to 335 million tons.
Although iron ore still accounts for approximately 80% of the company’s revenue, Vale continues to expand its base metals business, recording a 44.4% increase in nickel production compared to the same quarter last year and a 17.8% increase in copper production, with operations continuing in Brazil, Canada, and Indonesia.
