According to the Securities Times app, Vale SA is adjusting its strategy, planning to provide more low-grade iron ore to meet the current needs of the steel industry, no longer limiting itself to the role of supplying high-grade steelmaking materials. At an investor event in New York on Tuesday, CEO Gustavo Pimenta detailed this strategic shift, emphasizing the need for the company to adapt to the current market conditions and enhance supply flexibility.

As the world's second largest iron ore supplier (second only to Rio Tinto) headquartered in Rio de Janeiro, Vale SA has traditionally been seen as a top iron ore producer. However, Pimenta pointed out that despite the company's reputation for high quality, it must demonstrate greater flexibility in its operational strategy. "Even in a low-profit environment, we must be successful when customers indicate the need for more cost-effective products," he emphasized to reporters. This strategy differs from the focus of the former CEO Eduardo Bartolomeo on enhancing the supply of high-grade iron ore to help the steel industry reduce emissions.

Valley SA executives' analysis points out that the steel industry is facing many challenges, causing the industry to deviate from its intended carbon reduction path, which may be longer than expected. Therefore, the industry may not always be able to afford the premium required to purchase Vale SA's high-grade ore.

Since taking office in October, Pimenta has made restoring competitiveness and reducing costs a top priority. With concerns in the market about oversupply putting pressure on iron ore prices, Vale SA plans to maintain next year's iron ore output unchanged and has reduced long-term production forecasts for copper and nickel.

"This is a more practical plan. We are committed to ensuring a good start to the new cycle and, during my term, consistently and stably providing the market with everything we promise," said Pimenta.