According to analysts of BMO Capital Markets, Vale S.A. (Vale) might reduce its production of iron ore pellet to 50 million tons in 2019. The firm previously estimated its production of iron ore pellet at 60 million tons after the Brumadinho dam disaster on January 25th and the restrictions on mines and iron ore pellet facility.
It was expected that the production of Vale’s iron ore pellet will reach 52 million tons and 55 million tons in 2020 and 2021 respectively, which dropped from 10 million tons from the previous estimate at 62 million tons and 65 million tons respectively.
Besides, the global iron ore pellet market was forecasted to keep facing pressure of shortage since the demand for iron ore pellet was increasing.