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Vale's Trading Volume Surges 38.61% to 2.65 Billion Shares, Ranked 398th in Daily Trading

Market BriefThursday, May 8, 2025 7:41 pm ET

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On May 8, 2025, Vale's trading volume reached 2.65 billion, marking a 38.61% increase from the previous day. This surge positioned Vale as the 398th most traded stock of the day, with its share price rising by 0.87%.

Vale is actively exploring strategic options for its nickel operations amid current market challenges. The company's CEO, Gustavo Pimenta, highlighted that an oversupply of nickel from Indonesia is causing short-term issues, necessitating a review of the business's profitability. Potential actions include selling off nickel holdings, forming partnerships, or placing some assets in care and maintenance.

Vale, along with Glencore, another major mining company in the Sudbury region, has been considering a potential partnership or merger of their operations. This collaboration aims to combine assets, share infrastructure, and reduce costs. Although discussions are ongoing, no formal agreement has been reached yet.

Vale remains a significant employer in Sudbury, operating five mines, a mill, a smelter, a refinery, and employing nearly 4,000 people. The company's products include nickel, copper, cobalt, platinum group metals, gold, and silver. Apart from Sudbury, Vale operates nickel mines in Voisey’s Bay, Labrador, and Thompson, Manitoba, with additional operations in the U.K., Brazil, Japan, and Indonesia.

Earlier this year, Vale initiated a strategic review of its Thompson operation in Manitoba, with a potential sale being one of the possibilities. Despite current market challenges, Vale remains optimistic about the long-term fundamentals of nickel, particularly its role in the electrification of vehicles. The company is exploring ways to stay competitive during a period of low nickel prices, which were at US$6.92 a pound on Wednesday.

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