Economics
Big Miners Need a Better Plan for Growth Riddle in China
- EY says expects economic outlook, earnings to remain volatile
- Rio backs away from forecast on China’s peak steel output
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Rio Tinto Group, the world’s second-biggest miner, is no longer certain of picking the path ahead for growth in China, its biggest customer. It isn’t alone.
China’s short-term demand remains difficult to read, Glencore Plc’s Chief Executive Officer Ivan Glasenberg said last month after the largest miners were wrong-footed this year by Chinese stimulus that’s boosted raw materials demand, lifting prices following five straight annual declines. Rio now sees long-term targets as unhelpful, and has drafted a range of potential growth scenarios, with titles including “China Malaise” and “Fits and Starts,” according to CEO Jean-Sebastien Jacques.