Brazil’s Vale targets soaring Indian steel demand to offset China slowdown
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Vale (VALE3.SA), a Brazilian mining giant, is preparing itself to capitalise on a boom in demand from India, which aims to treble its steel production by the end of the decade.
According to Reuters, Chief Executive Gustavo Pimenta stated that the company expects increased sales to India and other Asian countries to compensate for sluggish demand in China, where steel output has plateaued at roughly 1 billion metric tons per year and may decline in the future years.
“India has 1.6 billion people, has surpassed China, and needs massive infrastructure investments, which means a lot of steel,” Pimenta said in an interview at Vale’s headquarters in Rio de Janeiro.
He went on to say that India’s steelmaking capacity might increase to around 300 million tons in the next five to seven years, highlighting the scope of possibilities for Vale’s high-grade iron ore.
Vale’s ore, which is known for its high quality, combines well with India’s lower-grade indigenous supply, Pimenta added.
“We add quality to the Indian mix. As steel output increases, we anticipate significant growth opportunities.”
This year, India is set to import over 10 million tons of Vale’s iron ore, up from nearly none just a few years prior.
Although this is still a modest fraction compared to China, which accounts for over 60% of Vale’s total revenues, it signifies a significant shift in the company’s market balance.
Shifting focus beyond China
While China is set to remain the world’s largest steel manufacturer, Pimenta said Vale no longer expects expansion there. “We do not envision future growth.”
Chinese production will most likely remain constant, if not shrink, he said, contrasting the flat Chinese market with India’s 12% annual steel output growth.
Beyond India, Vale sees increased demand from other Asian economies. Sales to Vietnam, for example, are expected to reach 8 million tons in 2025, which is significantly more than in previous years.
The company’s approach reflects a broader shift toward emerging nations, where industrialisation and infrastructure spending are rapidly increasing.
Strong quarter sets stage for “Vale Day”
Vale posted interim Q3 results with 5% sales growth and the highest iron ore output since 2018, strengthening the miner’s hand ahead of its annual investor day—“Vale Day” on December 2 in New York.
Pimenta stopped short of providing specific new production targets but said the firm will unveil plans for iron ore and copper capacity expansion projects in the Northern System of its Brazilian assets.
Key to this is Vale’s Novo Carajás initiative, set to increase iron ore production by 20 million tonnes a year and worth 70 billion reais ($12.95 billion) through to 2030.
The project, now 80% complete, is forecast to start operations in late 2026.
“As we explore more of Carajás, we get increasingly optimistic about its potential,” Pimenta said.
“At Vale Day, we’ll give investors more visibility and confidence.”
Vale also intends to triple copper production by 2035, indicating a sustained effort to diversify its revenue stream beyond iron ore.
The post Brazil's Vale targets soaring Indian steel demand to offset China slowdown appeared first on Invezz
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Brazil’s Vale targets soaring Indian steel demand to offset China slowdown
Share:
Vale (VALE3.SA), a Brazilian mining giant, is preparing itself to capitalise on a boom in demand from India, which aims to treble its steel production by the end of the decade.
According to Reuters, Chief Executive Gustavo Pimenta stated that the company expects increased sales to India and other Asian countries to compensate for sluggish demand in China, where steel output has plateaued at roughly 1 billion metric tons per year and may decline in the future years.
“India has 1.6 billion people, has surpassed China, and needs massive infrastructure investments, which means a lot of steel,” Pimenta said in an interview at Vale’s headquarters in Rio de Janeiro.
He went on to say that India’s steelmaking capacity might increase to around 300 million tons in the next five to seven years, highlighting the scope of possibilities for Vale’s high-grade iron ore.
Vale’s ore, which is known for its high quality, combines well with India’s lower-grade indigenous supply, Pimenta added.
“We add quality to the Indian mix. As steel output increases, we anticipate significant growth opportunities.”
This year, India is set to import over 10 million tons of Vale’s iron ore, up from nearly none just a few years prior.
Although this is still a modest fraction compared to China, which accounts for over 60% of Vale’s total revenues, it signifies a significant shift in the company’s market balance.
Shifting focus beyond China
While China is set to remain the world’s largest steel manufacturer, Pimenta said Vale no longer expects expansion there. “We do not envision future growth.”
Chinese production will most likely remain constant, if not shrink, he said, contrasting the flat Chinese market with India’s 12% annual steel output growth.
Beyond India, Vale sees increased demand from other Asian economies. Sales to Vietnam, for example, are expected to reach 8 million tons in 2025, which is significantly more than in previous years.
The company’s approach reflects a broader shift toward emerging nations, where industrialisation and infrastructure spending are rapidly increasing.
Strong quarter sets stage for “Vale Day”
Vale posted interim Q3 results with 5% sales growth and the highest iron ore output since 2018, strengthening the miner’s hand ahead of its annual investor day—“Vale Day” on December 2 in New York.
Pimenta stopped short of providing specific new production targets but said the firm will unveil plans for iron ore and copper capacity expansion projects in the Northern System of its Brazilian assets.
Key to this is Vale’s Novo Carajás initiative, set to increase iron ore production by 20 million tonnes a year and worth 70 billion reais ($12.95 billion) through to 2030.
The project, now 80% complete, is forecast to start operations in late 2026.
“As we explore more of Carajás, we get increasingly optimistic about its potential,” Pimenta said.
“At Vale Day, we’ll give investors more visibility and confidence.”
Vale also intends to triple copper production by 2035, indicating a sustained effort to diversify its revenue stream beyond iron ore.
The post Brazil's Vale targets soaring Indian steel demand to offset China slowdown appeared first on Invezz
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Brazil’s central bank reaffirms hawkish stance remains confident in inflation path