Rio Tinto on Friday diminished its 2021 iron ore shipments forecast, as a tighter labour market in Western 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 track to lose its spot because the world’s largest iron ore producer to Brazilian rival Vale S.A..
A decent world provide chain additionally added to its troubles, the corporate mentioned.
“There are some clear headwinds from current regulatory tightening (in China) and the transition might result in some near-term volatility,” Rio mentioned.
Iron ore costs have almost halved since hitting a document peak in mid-Might, with demand damage by China’s metal output curbs and a pointy slowdown within the nation’s property exercise resulting from a regulatory crackdown.
Nonetheless, Rio shipped 83.4 mt of the steel-making commodity within the three months ended Sept. 30, 2% greater than the 82.1 mt shipped final yr.
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