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Rio Tinto Iron Ore Output Rises, Copper Guidance Disappoints
- Simandou iron ore mine in Guinea on track with no cost overuns
- Jefferies says concerned over downside risk to ferrous prices
Iron ore has dropped by more than a fifth this year, largely due to a lack of demand from China’s ailing property market, although that’s been partially offset by supportive policy moves by Beijing.
Photographer: Carla Gottgens/BloombergThis article is for subscribers only.
Rio Tinto Group said iron ore shipments from Western Australia edged higher in the second quarter even after a rail disruption in May and muted Chinese demand, but warned full-year copper output would be at the lower end of its guidance range.
The global miner said China was supported by a recovery in manufacturing and “more resilient exports,” but also pointed to a property sector still under pressure, with “muted” domestic demand and risks of overcapacity in some industrial sectors.