Vale to Continue Upping Iron Ore Output After 2017 in Hopes of Regaining Market Share

Bloomberg reported that after reaching 400 million metric tons of iron ore output in 2017, Vale SA (NYSE:VALE) plans to increase its iron ore output by 20 to 25 million metric tons per year. Vale’s plan is aimed at taking back the 6 percent of market share that it has lost to other major companies — such as BHP Billiton Ltd. (ASX:BHP,NYSE:BHP,LSE:BLT) and Rio Tinto plc (ASX:RIO,NYSE:RIO,LSE:RIO) — over the past six years.

As quoted in the market news:

Vale is cutting investments, suspending projects and selling assets as demand wanes in China and Europe, the company’s two biggest markets. The company’s share of the global seaborne iron-ore market declined to about 26 percent in the first half from almost 28 percent a year earlier, according to data compiled by Bloomberg Industries. Vale has struggled with declining resources at older mines and production delays caused by heavy rains earlier this year.

Click here to read the full Bloomberg report.