Vale has raised its 2026 average iron ore price forecast to US$112 per ton from US$102 per ton, citing stronger market conditions and resilient global metal demand. 

CEO Gustavo Pimenta said the company remains highly optimistic about the year ahead despite rising costs linked to geopolitical tensions in the Middle East.

The improved outlook prompted Vale to increase its projected free cash flow from its core iron ore business by US$1.5 billion. The company also expects India’s crude steel production to double over the next decade, making the country a key driver of future growth.

Meanwhile, logistics disruptions in the Middle East have delayed the restart of Vale’s Oman pellet plant, which has an annual capacity of 9 million tons. The facility is now expected to resume operations in the third quarter of 2026. 

Vale is also evaluating opportunities in the rare earth sector while maintaining its focus on copper and nickel.