Brazilian iron-ore producer Vale has reported record production volumes for the period ended September 30, as production and productivity improvements more than offset the closure of its higher-cost operations during the period.

Vale on Tuesday reported total output of 88.2-million tones for the third quarter, up 3% over the comparable period of 2014, representing the highest quarterly production in company’s history.

Slower steel output growth in China and rampant iron-ore oversupply by major producers BHP Billiton, Rio Tinto and Vale, as they jostled for market share, were responsible for holding prices down. In 2014, the price of iron-ore declined by nearly half to about $66/t by late December. The iron-ore price continued to slide this year, dropping to about $50/t by the end of March, with analyst expecting continued pressure until at least 2016.

According to Metal Bulletin, the spot price for benchmark 62 fines closed at $53.76/t on Friday.

As part of its strategy, Vale had shuttered about 13-million tones of less-efficient operations during the third quarter, including beneficiation plants at the Feijao, Jangada, Pico, Fabrica and Brucutu operations. Nonetheless productivity gains in other operations partially offset the production stoppages, resulting in 37.5% reduced volumes acquired from third parties during the third quarter, when compared with the second quarter.

For the nine months ended in September, Vale produced a new record of 248-million tones, 11.8-million tones, or 5% more than in the comparable three month period a year earlier.

Vale’s pellet output during the nine months, excluding Samarco’s attributable production of 10.7-million tones, was 35.8-million tones, up 14.4% year-over-year – a historical record driven by the start-up of the Tubarao 8 pellet plant and the good performance of the Oman, Fabrica and Vargem Grande pellet plants.

Nickel output topped 71600t in the third quarter, 6.7% higher quarter-over-quarter, as a result of the improved performance of the operations in Indonesia and New Caledonia, following maintenance shutdowns during the second quarter.

Copper output reached 99 300 t in the third quarter, 5.3% lower when compared with the second quarter, as a result of the planned maintenance shutdowns in Sudbury, Ontario.

Gold production reached 100 000 oz in the third quarter, the best performance ever for this quarter, as a result of Salobo’s record performance.

Coal output reached 2.1-million tones in the three-month period, 2% higher over the previous quarter, as a result of the good performance of Moatize, in Mozambique, which produced 1.32-million tones, driven by coal processing plant improvements.

• [Editor:Juan]