Northern System production increased by 3.8 Mt y/y and 0.7 Mt q/q, reflecting positive results from continued initiatives to improve asset reliability and operational stability at Serra Norte and S11D.
The Southeastern System output was 3.2 Mt higher y/y and 1.2 Mt higher q/q, driven by (i) Conceição concentration plants' improved performance in Itabira; (ii) higher mining equipment availability at Alegria; and (iii) higher third-party purchases.
Southern System production increased by 1.6 Mt y/y and 1.2 Mt q/q, mainly driven by (i) improved performance at the Vargem Grande Complex; and (ii) higher third-party purchases, partially offset by lower production at Viga, which resumed operations in late November, as well as lower run-of-mine output.
Pellet production increased by 1.6 Mt y/y and 0.7 Mt q/q, driven by an increase in pellet feed supply from Brucutu, resulting in higher pellet output from the Tubarão plants, partially offset by planned maintenance at the São Luis and Oman plants in October. In Q4, Vale started producing iron ore briquettes at the Tubarão Complex, and volumes will start to be recorded in 1H24.
Iron ore fines and pellet sales reached 88.2 Mt in the quarter, 9.8 Mt higher q/q and flat y/y, driven by higher production and inventory sales, taking advantage of favorable market conditions.
The average realized iron ore fines price was US$ 118.3/t, US$ 13.2/t higher q/q, largely attributed to higher benchmark iron ore prices and a positive impact from forward price adjustments. The average realized iron ore pellet price was US$ 163.4/t, relatively flat q/q, as the positive effect from higher benchmark iron ore prices was offset by lower quarterly pellet premiums.
The all-in premium totaled US$ 1.6/t, US$ 2.2/t lower q/q and US$ 3.8/t lower y/y. Given market conditions in Q4, with lower discounts for high-silica products as well as lower premiums for high-grade products, Vale decided to increase high-silica products' share in the sales mix, while rebalancing premium iron ore inventories (IOCJ and BRBF), maximizing its product portfolio value.