Vale's (VALE +1.4%) announced 20% cut in pellet production may hurt 2012 EBITDA by $300M, or...

|About: Vale S.A. (VALE)|By:, SA News Editor

Vale's (VALE +1.4%) announced 20% cut in pellet production may hurt 2012 EBITDA by $300M, or ~1.5% of expected 2012 EBITDA, according to a Citi analyst. "The wider implication is that pellet premiums have collapsed and Vale is attempting to maintain what premium is left by holding back capacity," the firm says.