Vale sees production surge

Vale, whose output fuels the Brazil-to-China capesize trade, posted the best second-quarter iron ore production totals in its history.

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The Brazilian miner, the world’s largest iron ore producer, said today that production of the commodity reached 79.4 million tonnes during the period.

That marks a 12.6% increase on the second quarter of 2013 and an 11.8% jump on the first quarter of this year.

While Rio de Janeiro-based Vale said it experienced production gains across its Brazilian assets thanks in part to improved weather conditions, output improvements ts Carajas Plant 2 and southern Conceicao Itabiritos mines were particularly helpful.

So far in the first half, Vale has produced 151 million tonnes, an 11.1% improvement on the first six months of last year.

The dry-bulk market is licking its lips as it watches Brazil’s iron ore sector, where further production gains expected in the second half of the year are predicted to boost capesize rates.

In addition to being a major charterer, Vale owns a fleet of large bulkers.