Following a decline in iron ore deliveries in the third quarter of 2022 due to sluggish global demand, particularly in China, the world's largest consumer of metals, Rio Tinto, estimated yearly iron ore shipments at the lower end of its guidance on October 18, 2022.
As China and Europe reduce steel production in response to greater pressure from increased supply, iron ore prices are expected to conclude in 2022 at their lowest levels in the last three to four years, placing Rio at odds with an increase in production costs.
Rio reduced its interim dividend payout by more than half in July due to falling prices and a decrease in demand in China. The miner said that its forecast was contingent on ramping up the Gudai-Darri and Robe Valley projects, and the availability of skilled labor. It said that it expects annual iron ore exports at the low end of its estimated range of 320 million tonnes (Mt) to 335 Mt. The global market volume of iron ore production decreased marginally in 2022 over that in 2021, according to GlobalData.
To increase its production in the Pilbara region, Rio said in September 2022 that it would collaborate with China Baowu Steel Group to launch an iron ore project for $2 billion. On October 19, 2022, BHP Group is expected to release its first-quarter production numbers.
Don’t wait - discover a universe of connected data & insights with your next search. Browse over 28M data points across 22 industries.
Access more premium companies when you subscribe to Explorer
Contact the team or request a demo to find out how our data can drive your business forward