Vale has maintained its 2016 output guidance, forecasting output at the lower end of the 340-350 million ton range.
Despite the firm output forecasts, however, iron ore output growth has slowed.
BMI Research said in a note this week that global iron ore production would grow "minimally" from 3,149 million tons in 2016 to 3,275 million tons by 2020 — or just 0.1 percent a year, down significantly from the average growth rate of 4.8 percent from 2011 to 2015 - as lower prices forced high-cost producers to shut.
"On the one hand, supply growth will be primarily driven by Australia and Brazil on the back of expanding output by major miners, such as Rio Tinto, BHP Billiton, Vale and Fortescue Metals Group," the BMI analysts wrote.
"On the other hand, miners in China, which operate on the higher end of the iron ore cost curve, will be forced to cut output due to continued iron ore price weakness."
In June, an annual survey of 50 leading Australian mining executives showed sentiment had finally started to improve, after several years of gloom amid a commodity price slump that saw iron ore prices plunge more than 70 percent from 2011 highs.
According to by Newport Consulting, 43 percent of respondents were upbeat about industry prospects for the year ahead — more than double the 16 percent who gave the same answer a year ago.
It was also the first time in three years that sentiment took an upturn, although some analysts still advocated caution.
A jump in public infrastructure investment led by Chinese state-owned enterprises (SOE) has raised questions about the quality of growth and sustainability of demand, analysts have noted, given concerns about the debt load of SOEs and the sustainability of some of their business in China's new consumption-led economy.
Data showed first-half fixed asset investment grew 9 percent from a year ago, but private sector fixed-asset investment grew just 2.8 percent in same period, down from 3.9 percent growth in the first five months, indicating headwinds in the private sector from slowing exports and macroeconomic jitters.
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