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Wednesday, July 22, 2026

Vale’s Q2 Sohar pellet output slumps after conflict-related disruption

Vale’s iron ore pellet production at its Oman operations fell sharply in the second quarter of 2026 as the temporary suspension of its Sohar pellet plants amid Middle East tensions weighed on output.

Pellet production at the Oman complex totaled 200,000 tons in the second quarter, down 88.5pct YoY and 89.4pct from the first quarter’s 1.88 mln tons. For the first half of 2026, production reached 2.08 mln tons, a decline of 44.1pct from 3.72 mln tons a year earlier.

Vale said production at the Oman pellet plants was temporarily suspended following developments related to the Middle East conflict and the resulting logistical constraints. During the shutdown, pellet feed originally allocated to Oman was redirected to the company’s Tubarao pelletizing plants in Brazil and to iron ore fines sales, while scheduled maintenance activities were carried out. The company added that production at the Oman plants partly resumed in late June.

Globally, Vale’s pellet production declined 7.0pct YoY to 7.30 mln tons in the second quarter, while pellet sales increased 3.5pct to 7.75 mln tons. The company said the decline in pellet output was primarily due to the temporary suspension of its Oman operations.

Meanwhile, the miner’s iron ore production rose 0.8pct YoY to 84.26 mln tons in the second quarter, while iron ore sales increased 3.1pct to 79.75 mln tons, supported by stronger production across its mining operations and inventory sales.

Located at Sohar Port, Vale’s Oman pelletizing complex was commissioned in 2011 with an investment of USD 2 bln. The facility has an annual pellet production capacity of 9 mln tons and includes a stockyard and distribution centre capable of handling up to 40 mln tons of iron ore annually.

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