Rio Tinto Group, the world’s top iron ore producer, said second-quarter shipments of the steelmaking ingredient fell 1% from a year earlier. It left full-year shipment guidance unchanged.
The London-based miner shipped 79.1 million tons of iron ore in the three months to June 30. Rio’s aluminum production was up 11% year on year to 814,000 tons, while copper output fell 1% to 145,000 tons.
Read more: Escondida Copper Production Drops on Plant Disruptions, Rio Says
Steel demand in China, the world’s second largest economy, encountered persistent headwinds, and ongoing weakness in the nation’s property sector continues to drag on growth, the company said in a statement Wednesday. Rio depends on Chinese buyers for the majority of its revenue.
China’s disappointing economic recovery following the end of Covid restrictions late last year, particularly in the real estate sector, has put downward pressure on steel demand and iron ore prices.
Still, Vale SA, the world’s No. 2 iron ore supplier, beat its output expectations with 78.7 million metric tons of iron ore produced in the second quarter, according to a Tuesday statement. The extra supply adds further pressure to a market weakened by the lackluster appetite in China.
--With assistance from James Fernyhough.
(Updates with details from third paragraph)
