Iron ore price weakens as Australia flags return to sub-$100 prices
Futures dropped for a fourth day in Singapore, to trade about 3% lower for the week.
Rio Tinto reported a 1.2% rise in its third-quarter iron ore shipments on Tuesday, as the Anglo-Australian miner ramped up production at its Gudai-Darri mine.
The world’s biggest iron ore producer shipped 83.9 million tonnes (Mt) of the steel-making ingredient from its Pilbara operations in the three months ended Sept. 30, compared with 82.9 Mt a year earlier.
That compares to a Visible Alpha estimate of 83.0 Mt, according to Barrenjoey.
Rio, which generates 70% of its profit through its iron ore operations, saw prices of the commodity improve compared to the second quarter as top consumer China stepped up its stimulus efforts.
The company maintained its full-year expectations for shipments from Pilbara in the upper half of the 320 million to 335 million tonnes range. Pilbara iron ore unit cost guidance remained unchanged at $21.0 to $22.5 per tonne.
It estimated Pilbara iron ore shipments to be within the 323 to 338 million tonnes range for 2024.
Mined copper production of 169,000 tonnes in the quarter was 5% higher than a year earlier, the company said.
The rise, on a consolidated basis, reflected the ramp-up of the high-grade underground mine at Oyu Tolgoi, Mongolia and higher copper feed grades at the Escondida mine.
(By Rishav Chatterjee and Nausheen Thusoo; Editing by Sriraj Kalluvila)
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