FILE PHOTO – An operations map is displayed at the booth of Brazilian mining company Vale SA at the Prospectors and Developers Association of Canada (PDAC) annual conference in Toronto, Ontario, Canada March 1, 2020. REUTERS/Chris Helgren

Feb 25 (Reuters) – Executives at mining company Vale SA (VALE3.SA) said on Friday that Russia’s invasion of Ukraine had led to speculation over the price of nickel, and they expect further what the conflict also influences the price of iron ore pellets.

Shares of the miner fell 1.5% in Sao Paulo after the company reported better-than-expected fourth-quarter results, though analysts were disappointed with weaker operating profit and weak flow generation cash amid higher provisions linked to two dam disasters that killed hundreds.

“The sequential deterioration (in operating income) was primarily due to lower realized iron ore prices, which more than offset strong iron ore sales and lower cash costs,” analysts said. ‘Itau BBA in a note.

Vale was once the world’s biggest producer of iron ore and remains a major player for the steel ingredient, although prices have fallen in recent months.

The price of nickel, however, has risen around 40% so far this year and Vale executives said in a call to discuss the results that they expect demand for the metal to double. over the next decade as automakers transition to electric vehicles.

They added that they expected copper demand to increase by 30% over the same period.

Russia and Ukraine are major producers of iron ore pellets and the company expects the dispute could impact prices, director Marcello Spinelli said.

Vale reiterated its iron ore forecast for 2022 and expects to produce between 320 and 335 million tonnes of the steel ingredient.

Reporting by Marcelo Rochabrun, Marta Nogueira and Roberto Samora; edited by Jason Neely

Our standards: The Thomson Reuters Trust Principles.