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Vale’s 1Q 2012 adjusted EBITDA came in at $4.965B, significantly below the Street’s forecast of $7.519B and 4Q’s 7.396B as abnormal rainfall in Brazil hurt iron ore shipments and costs, iron ore price premiums declined 8.9% from 4Q and the company saw a one-off effect from the significant reduction of one-month lagged quarterly iron ore contracts.
Guidance was for Vale to meet its planned iron ore volumes for the year despite a slow start as March iron ore shipments rebounded sharply; March levels were higher than the combined January/February total. Vale expects the global iron ore market to remain tight due to strong demand from China as well as no major projects coming online in the near term.
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