Rio Tinto, the world’s top iron ore exporter, said shipments of the steelmaking material slipped in the fourth quarter, as demand from China remained lacklustre and production at some mines declined.
The miner exported 85.7 million tonnes of iron ore in the three months to December 31, down 1 per cent from the year before. Meanwhile, mined copper surged 26 per cent as Rio mined higher quality grades at its Escondida mine in Chile and continued to ramp up output at the Oyu Tolgoi project in Mongolia, it said in filings.
The recovery of China’s property sector is crucial for Australia’s economy.Credit: Getty
The Chinese economy provided mixed signals during the quarter and still faces headwinds from an ongoing property market oversupply, Rio said. Beijing is expected to use a broad range of stimulus measures to offset the effects of US tariffs and a persistent housing downturn.
Despite multiple stimulus packages, China’s government has struggled to revive its spluttering economy. Steel exports to other Asian nations have risen and manufacturing has somewhat offset domestic building demand.
The threat of increased tariffs under Donald Trump’s second term as US President is looming and analysts from Goldman Sachs have warned iron ore prices could take a knock if global growth suffers under higher inflation.
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Rio posted total annual iron ore shipments of 328.6 million tonnes — in line with guidance. The material was one of 2024’s worst performing commodities, slumping 28 per cent. Still, after falling below $US90 a ton in late September, it found more support in the year’s final quarter and closed at $US101.45 a ton in Singapore on Wednesday.
Along with other operators in the region, Rio faces a challenge in securing adequate grades across its iron ore business in Western Australia’s remote Pilbara region. Part of the solution is development of the Western Range mine which is set to come online this year. However, Rio has previously said it would need to bring a new mine into production every year until 2030 just to match current output from its iron ore business.
“Productivity improvements of 10 million tonnes did not fully offset depletion, predominantly at Yandicoogina and Paraburdoo,” the company said Thursday.
