Vale's Trading Volume Drops 39.83% Ranking 426th Amidst Nickel Production Hurdles

On June 2, 2025, Vale's trading volume reached 2.32 billion, a 39.83% decrease from the previous day, ranking 426th in the day's stock market. Vale's stock price rose by 1.53%.

Vale's efforts to increase nickel production at the Onca Puma complex in Brazil have hit a snag. The Brazilian power grid operator ONS has rejected Vale's request to boost power consumption, which is crucial for operating a new furnace as part of a $555 million expansion project. This decision is critical as Vale aims to start the second furnace later this year, with plans to significantly increase its global nickel production by 2030. Vale had sought a power consumption increase to 200MW at the start of this year but missed the deadline to sign the necessary contract, leading to the denial of its request. The power initially sought by Vale has since been allocated to another project in ONS' pipeline. In response, Vale is actively exploring technical alternatives with ONS and remains optimistic about resolving the issue promptly, maintaining its outlook to begin operating the new furnace in the second half of the year. The expansion is expected to contribute an additional 15,200 tonnes to Vale's annual nickel output, which currently stands at approximately 27,000 tonnes per annum, contributing around 10% of Vale's total nickel production. The expansion is a key component of Vale's strategy to increase its global nickel production from around 160,000 tonnes last year to as much as 250,000 tonnes by 2030.

Amidst these developments, Vale reported a 17% decrease in net income for the first quarter of 2025, ending March 31. The decline to $1.39 billion from $1.67 billion a year earlier is primarily attributed to lower iron ore prices. Net operating revenues also saw a 4% decrease year-on-year, totaling $8.1 billion, compared with $8.45 billion in the first quarter of 2024.