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Rio Tinto forced to cut iron ore supplies as it is hit by falling demand amid mounting fears of recession
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Declining demand: Rio Tinto has warned of an ongoing slowdown in global commodities markets
Rising fears of a recession hit Rio Tinto’s share price yesterday after it cut its iron ore deliveries for this year.
The mining giant has warned of an ongoing slowdown in global commodities markets as the threat of a recession in Europe and the US, along with a real estate crisis in China, weighs on demand for iron ore.
As a result, Rio predicted that deliveries of iron ore from its core activities in Pilbara, Western Australia, would be at the lower end of its expectations this year, following a 1 pc drop. in the third quarter.
Shares fell 1.5 percent, or 72p, to 4748p.
Rio’s fortunes are clouded by uncertainty over China’s economy due to the country’s ongoing zero-covid policies and weakness in the real estate market.
These factors have curbed Chinese steel production and consumption by 9 percent year-to-date by August, while iron ore prices have hit an 11-month low.