SAO PAULO, Jan 29 (Reuters) - Vale on Monday reported 10.6% growth in its fourth-quarter iron ore production compared with a year earlier, bringing its annual production to above its estimates.

The company produced 89.40 million metric tons of iron ore in the last three months of 2023, it said in a securities filing.

That took its full-year output to 321.15 million tons, above its guidance of 315 million tons of iron ore.

On the other hand, shipments of the commodity used to make steel fell 4.1% in the fourth quarter, from a year earlier to 77.89 million tons. Compared with the previous three months, however, sales grew 11.7%.

The average realized price of Vale's iron ore fines was $118.3 per ton in the quarter, up 12.6% from the third quarter.

(Reporting by Peter Frontini Editing by Marguerita Choy)