Rio Tinto trims forecasts on weakening global economy

The Anglo-Australian miner said Pilbara operations produced 84.3m tonnes (mt) in the three months to September end, up 1% year-on-year, but shipments fell 1% to 82.9mt. Bauxite production fell 2% to 13.7mt, aluminium was down 2% at 759,000 tonnes while mined copper jumped 10% at 138,000 tonnes.

Rio Tinto said: "Commodity prices continued their downward trend during the [third] quarter, and there are further downside risks to demand as the global economy slows.

"Fears of recession are emerging on the implementation of aggressive interest rate hikes in the US and Europe, while a weak property sector continues to weigh on China’s economy."

In particular, China - a key market - had been "challenged" by ongoing Covid-lockdowns, power shortages and weakness in the property market, the miner added, hitting iron ore prices. China’s steel production and consumption was down 9% year-on-year, Rio Tinto said.

LME aluminium prices were also down, losing 20% over the quarter, while copper fell 7%.

The Anglo-Australian miner said full-year Pilbara iron ore shipments were still likely to come in between 320mt and 335mt, but at the lower end of that range. Refined copper was also likely to be lower, with the forecast cut to 190,000 tonnes to 220,000 tonnes from 230,000 tonnes to 290,000 tonnes.