Rio Tinto tempers annual iron ore shipments outlook as demand weakens By Reuters

(Reuters) -Rio Tinto on Tuesday forecast annual iron ore shipments on the decrease finish of its outlook after third-quarter iron ore deliveries fell amid weak world demand, significantly in prime metals client China.

Rio has been battling with a surge in manufacturing prices whereas iron ore costs are on observe to finish 2022 at their lowest within the final three or 4 years and can in all probability languish subsequent yr as nicely, as China and Europe minimize metal output, whereas strain mounts from further provide.

Weak point in costs and cooling China demand had led Rio to greater than halve its interim dividend payout in July.

The miner mentioned it now expects annual iron ore shipments on the low finish of its forecast vary of 320 Mt to 335 Mt, including that its outlook was depending on ramping-up the Gudai-Darri and Gown Valley tasks, and the provision of expert labour.

The world’s greatest iron ore producer shipped 82.9 million tonnes (Mt) of the steel-making commodity within the three months ended Sept. 30, in contrast with 83.4 Mt a yr earlier.

Rio, nonetheless, mentioned that on a quarter-on-quarter foundation, shipments rose 4%, regardless of two rail outages, together with one on the Guidai-Darri line.

The corporate retained its annual value outlook for iron ore, however raised estimates for to between 150 cents and 170 cents per pound from 130 cents to 150 cents a pound.

In a separate announcement, Rio mentioned it could “modernise” a virtually 50-year-old settlement with Wright Prospecting to develop the Rhodes Ridge iron ore mission, and goals to operationalise a plant by the top of the last decade with an preliminary annual capability of as much as 40 million tonnes.

Rio final month mentioned it could group up with China Baowu Metal Group to develop an iron ore mission in Western Australia for $2 billion.