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Rio Tinto says the global economy is resilient and inflation is trending down despite an unstable recovery in China, energy prices and shipping costs remaining volatile, and iron ore shipments falling over the past three months due to bad weather that has disrupted its ports.
The mining giant says iron ore depletion at its Pilbara operation led to production of the key steelmaking ingredient – one of Australia's biggest exports – falling by 2 per cent to 77.9 million tonnes during the first quarter. Shipments amounted to 78 million tons, 5 percent less than in the first quarter of last year.
The Simandou Mountains in Guinea contain high-quality iron ore.credit: Rio Tinto
“The decline in volumes was mostly a result of weather disruption at ports, which resulted in lower inventory withdrawals compared to last year, as well as lower production at mines,” the UK and Australian-listed company said.
Rio said its full-year forecasts would remain unchanged across all of its mineral products.
“The global economy remains resilient, despite strong interest rate increases in the past two years, with a rebound in industrial production ahead. Inflation is trending lower, but slower than expected, with risks to energy prices and shipping cost volatility remaining,” the factor said. Mining in Quarterly Update Labor markets remain resilient.
Her view of the United States was “optimistic.” Rio said the euro zone experienced a recession last year and is likely to remain weak at the beginning of this year, but will gradually rebound as inflation falls, industrial production increases, and investment in the energy transition.
China, the world's largest steel producer and consumer, is facing a sharp downturn in its real estate sector, but Rio and its biggest competitor BHP said earlier that the country's manufacturing sector is strong, increasing production and exports.
“Domestic steel demand in China trended at similar levels to last year, but steel exports rose 30 percent year-on-year during the first two months and are likely to remain historically high, which in turn supports demand for iron ore,” the company said. .
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