Rio Tinto’s quarterly iron ore shipments fall 5% on weak Chinese demand

Rio Tinto on Tuesday reported a 5.4% drop in iron ore shipments in the fourth quarter, due to a delay in the completion of a new green mine in Western Australia and lower demand. of the main consumer, China, which is seeking to reduce its carbon emissions.

A delay in production at the new Gudai-Darri mine, as well as labor shortages in Western Australia due to the prolonged closure of interstate borders due to a pandemic, led to lower ore shipments of the Pilbara region.

At the same time, China’s efforts to rein in its booming real estate market have led to a sharp slowdown in the sector, which has reduced demand for raw materials, including iron ore.

This, coupled with China’s efforts to reduce carbon emissions, has weighed on steel production, leading to a reduction of almost half in iron ore prices from the peak reached in May of the year. last year.

The world’s largest iron ore producer shipped 84.1 million tonnes (Mt) of the commodity in the three months to December 31, roughly matching UBS’s forecast of 84 Mt but below 88.9 Mt from the previous year.

Rio expects iron ore shipments from Pilbara to be between 320 and 335 Mt in 2022, compared to 321.6 Mt shipped in 2021 and a UBS estimate of between 330 and 340 Mt.