Business · Companies · 3 hrs ago
Vale's third-quarter profit fell 53% as iron ore prices dropped
Vale's profit fell 53% in the third quarter of 2026, to US$1.26 billion from US$2.69 billion a year earlier.
The Brazilian mining company sold nearly the same volume of iron ore, but received less for each tonne and faced higher production and delivery costs.
Its iron ore sales price fell 10% from a year earlier, while the cost of shipping ore to China rose.
Production dropped 6% to 88.4 million tonnes, but sales stayed steady as Vale used stocks built up in earlier quarters.
Copper's gains softened the profit decline, although the figures provided do not specify the size of that contribution.
Vale says the effect of higher freight costs on sales prices could reverse in the fourth quarter if shipping rates fall.
Vale reported third-quarter 2026 profit of US$1.26 billion, down 53% from a year earlier, according to Exame and UOL.
Lower iron ore prices and higher production and shipping costs weighed on results.
Iron ore production fell 6% to about 88.4 million tonnes, while sales were broadly stable at 86.3 million tonnes.
The average price received for Vale’s iron ore fines fell 10% year on year to US$85.1 per tonne.
Vale said hedging helped protect margins, while stronger copper performance limited the profit decline.
- Who
- Vale, the Brazilian mining company.
- What
- Third-quarter 2026 profit fell sharply, amid lower iron ore prices and higher costs.
- When
- The third quarter of 2026; results were reported on October 29, 2026.
- Where
- Vale’s operations and international iron ore markets. The sources do not state a single location for the result.
- Why
- Iron ore prices fell and production and shipping costs rose; lower iron ore production also contributed.
This story does not have two clearly opposing sides.
Vale recorded lower profit as iron ore prices declined and costs rose.
Vale’s third-quarter results were reported.
- Net profit
- US$1.26 billion, down 53% year on year, according to Exame and UOL
- Iron ore production
- 88.4 million tonnes, down 6% year on year
- Iron ore sales
- 86.3 million tonnes
- Realized iron ore fines price
- US$85.1 per tonne, down 10% year on year
- Iron ore freight cost
- US$22.8 per tonne, up 21% year on year
4 sources
What people are saying
a execução disciplinada de nossa estratégia e um foco contínuo na excelência operacional
Em um ambiente de mercado dinâmico, a flexibilidade de nosso portfólio, nossa estratégia de frete e nosso programa de hedge ajudaram a proteger as margens e a sustentar uma sólida geração de fluxo de caixa