Vale CEO Gustavo Pimenta said he sees no signs that the Iran conflict has
damaged global metals demand and that the company’s margins have widened despite
shipment disruptions. He said Vale is focused on unlocking asset value rather
than pursuing acquisitions and described global demand for critical minerals as
very constructive. Disruptions in the Strait of Hormuz raised fuel costs and
freight rates, but higher prices and volumes have largely offset the impact on
miners. Vale has raised full-year free cash flow guidance for its core iron-ore
business by $1.5bn and now expects average iron-ore prices of $112/tonne for the
year versus a $102/tonne pre-conflict scenario.
