Samarco's Operational Preview for Q4 2024: Strong Production and Sales Amid Price Pressure
Samarco, the Brazilian iron ore and pellet producer, has shared an operational preview for the fourth quarter of 2024, reporting positive growth in production and sales despite a drop in realized prices. While the figures are preliminary, unaudited, and subject to revision, they provide a snapshot of the company’s recovery and performance following its restart of operations after the 2015 Mariana dam disaster. Samarco is currently under judicial reorganization and operates as a joint venture between Vale and BHP.
Q4 2024 Production and Sales Performance
For the fourth quarter of 2024, Samarco achieved a combined production of 2.9 million metric tons of iron ore and pellets. This represents a 14% increase compared to the previous quarter and a 13% rise from the same period in 2023. The growth in production is a testament to the company's continued recovery following the tragic dam collapse in 2015, which severely disrupted its operations for several years.
Samarco’s sales volume for the fourth quarter reached 3.0 million metric tons, up by a remarkable 51% from the previous quarter and 13% higher than in Q4 2023. This increase in sales volume highlights strong demand for Samarco’s iron ore and pellets, as well as successful efforts to restore its operational capacity.
However, the realized price of the product mix decreased by 6% from the previous quarter, standing at $139.00/metric ton. This figure also represents a 15% decline compared to the same period last year. The drop in prices reflects broader market trends and fluctuations in iron ore prices, which have been subject to global economic factors, including changes in demand from major consumers such as China.
Full-Year 2024 Performance: Record Production Levels Post-Recovery
For the full year of 2024, Samarco achieved 9.7 million metric tons of pellets and fines, marking a 4% increase from 2023 and setting a new production record since the company resumed operations after the Mariana disaster. This increase underscores the company’s successful return to full-scale production and the stabilization of its operations.
Samarco’s total sales for the year reached 9.4 million metric tons, a 2% rise from 2023. Despite the growth in both production and sales, the average realized sales price for the year fell by 7%, averaging $154/metric ton, compared to the previous year. This decline in prices is reflective of a broader downtrend in commodity prices, as global iron ore prices have been affected by changing demand dynamics and market conditions.
Judicial Reorganization and Future Outlook
Samarco’s journey to recovery has been a challenging one. Since the catastrophic Mariana dam collapse in 2015, the company has faced numerous setbacks, including significant legal, environmental, and financial challenges. Despite these hurdles, Samarco has made significant strides in its recovery, particularly in terms of increasing production and sales volumes.
The company’s ongoing judicial reorganization aims to address its financial obligations and ensure long-term viability. As Samarco continues its efforts to stabilize its operations, it remains a key player in the Brazilian iron ore market and a critical supplier to global steel producers.
