2023-07-19 12:34:25 ET
Rio Tinto ( NYSE: RIO ) -1.8% in Wednesday's trading after reporting a drop in Q2 iron ore shipments , citing China's faltering economic recovery as weighing on demand.
"China's economic recovery has fallen short of initial market expectations, as the property market downturn continues to weigh on the economy and consumers remain cautious despite monetary policy easing," Rio Tinto ( RIO ) said, adding the steel demand recovery encountered "persistent headwinds" in Q2.
Rio ( RIO ) said it expects to see full-year iron ore shipments in the upper half of guidance of 320M-335M metric tons, while lowering full-year guidance for alumina production to 7.4M-7.7M tons from as much as 8M tons previously, and refined copper to 160K-190K tons from as high as 210K tons.
Also, Rio Tinto's ( RIO ) Iron Ore Company of Canada subsidiary slashed full-year production guidance to 10M-11M metric tons from its previous forecast of 10.5M-11.5M tons, as it coped with wildfires in northern Quebec.
IOC's iron ore pellets and concentrate production fell 21% Y/Y to 2.1M tons, and half-year output slumped 8% to 4.6M tons, as the company lost more than three weeks of production due to the wildfires.
Global iron ore mining rivals BHP ( BHP ) -1.2% and Vale ( VALE ) -0.5%.
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Rio Tinto warns of China's lackluster economy weighing on metals demand