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Rio Tinto cuts 2021 iron ore shipments forecast on labour squeeze

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Oct 15 (Reuters) – Rio Tinto (RIO.AX), (RIO.L) on Friday diminished its 2021 iron ore shipments forecast, as a tighter labour market inWestern Australia delayed the completion of a brand new greenfield mine at Gudai-Darri.

The miner now expects 2021 Pilbara iron ore shipments between 320 million tonnes (mt) and 325 mt, down from the decrease finish of a earlier vary of 325 mt to 340 mt.

The downgrade places Rio on course to lose its spot because the world’s largest iron ore producer to Brazilian rival Vale S.A. (VALE3.SA). learn extra

A decent international provide chain additionally added to its troubles, the corporate mentioned.

“There are some clear headwinds from recent regulatory tightening (in China) and the transition may lead to some near-term volatility,” Rio mentioned.

Iron ore costs have almost halved since hitting a report peak in mid-May, with demand harm by China’s metal output curbs and a pointy slowdown within the nation’s property exercise on account of a regulatory crackdown. learn extra

Still, Rio shipped 83.4 mt of the steel-making commodity within the three months ended Sept. 30, 2% larger than the 82.1 mt shipped final 12 months.

Reporting by Indranil Sarkar and Sameer Manekar in Bengaluru; Editing by Devika Syamnath

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