Falling demand: Rio Tinto has warned of a persistent slowdown in global commodity markets
Mounting recession fears hit Rio Tinto’s share price yesterday after it scaled back its iron ore shipments for this year.
The mining giant has warned of a persistent slowdown in global commodity markets as the threat of recession in Europe and the US along with a property crisis in China weighs on iron ore demand.
As a result, Rio forecast that shipments of iron ore from its core operations in Pilbara, Western Australia, would be at the lower end of its guidance this year, having fallen by 1pc in the third quarter.
Shares slipped 1.5 per cent, or 72p, to 4748p.
Rio’s fortunes are clouded by uncertainty over China’s economy due to the country’s ongoing zero-Covid policy and property market weakness.
These factors have curtailed China’s steel production and consumption by 9 per cent by August year-to-date, with iron ore prices near an 11-month low.
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