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Vale Cuts Full-Year Production Forecast, Buoying Iron-Ore Market

  • World’s No. 2 miner lowers top-end guidance by 15 million tons
  • Move “limits further downside risks” for iron ore: Jefferies
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Vale SA, the world’s No. 2 iron ore supplier, lowered its annual production guidance in a move that should support prices of the steel-making ingredient.

The Brazilian mining giant now expects to produce 310-320 million metric tons of iron ore in 2022, compared with a previous forecast of 320-335 million tons. Vale attributed the guidance cut to the sale of its operations in the Midwestern System, and said it’s seeking greater flexibility in production “due to current market conditions.”