Thu Sep 12 00:48:28 UTC 2024: ## Iron Ore Price Under Pressure as Vale Boosts Production
**Sydney, Australia** – The iron ore price is facing further downward pressure as Vale, one of the world’s largest iron ore miners, has announced plans to increase production in 2024 and beyond.
This move comes despite the already declining commodity price, which has dropped to the low US$90s, impacting the profitability of miners like BHP, Rio Tinto, and Fortescue.
Vale has raised its estimated iron ore production volume for 2024 to a range of 323mt to 330mt, up from the previous guidance of 310mt to 320mt. This represents a more than 3% increase in the mid-point of its annual production guidance.
The company has also started commissioning wet processing operations at the Vargem Grande 1 Project, adding approximately 15mt per annum of iron ore production. Vale has stated this project represents a significant step towards its 2026 production guidance of between 340mt to 360mt.
This potential 7% increase in Vale’s production by 2026 could further weigh on the already weakened iron ore price, particularly if Chinese demand for the commodity doesn’t pick up.
The Australian share prices of major iron ore miners have already suffered, with BHP down 22%, Rio Tinto down 21%, and Fortescue down 44% since the start of 2024.
Analysts suggest that the iron ore price could continue to decline if Vale’s increased supply isn’t met by an uptick in demand.
First Piper 