Vale Reports Strong Growth in Iron Ore Production, Chinese Aluminium Imports Rise

Metals – Vale iron ore output grows

The latest data from Chinese Customs shows that imports of unwrought aluminium and products rose 12.8% YoY to 211.2kt in June, leaving cumulative imports over the first half of the year at 1.2mt, up 10.7% YoY. On the export side, alumina exports fell 60% YoY to 80kt last month, while YTD exports remained almost flat YoY at 560kt.

The latest quarterly production update from Vale shows increased iron ore production in the second quarter by 6.3% YoY to 78.74mt. The increase was driven by record output for a second quarter from the S11D mine. This leaves iron ore output over the first half of the year at 145.52mt, up 6% YoY. The miner left its full-year guidance unchanged at 310-320mt.

Indonesia has increased export taxes for copper, zinc and iron. The new regulation sees the export tax rate for copper concentrate increase to a range of 5% to 10% as the government aims to accelerate the pace of local smelter construction. The government banned the export of raw materials in June, however, excluding companies whose smelter completion rates stood above 50% and provided they paid an export tax. Meanwhile, the tax rates for iron, zinc and lead concentrates will also rise to a range of 2.5% to 7.5% based on the same rates of smelter completion. The new rates are effective from 17 July until the end of the year and the government is expected to revise these higher once again in January 2024.