Rio Tinto sees Beijing’s stimulus driving iron ore demand as China receives Australia’s largest copper order in 4 years

Rio Tinto forecasts China – home to the world’s largest steel industry – will hit a peak in consumption, and expects global iron ore demand will rise almost

Meanwhile, Australia sent its largest copper shipment to China since 2020, raising hopes Beijing may be removing a ban imposed on Canberra

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Machines mov iron ore to rail cars at Rio Tinto’s operations in Western Australia. The company expects global iron ore demand will rise almost a quarter by 2050, thanks in large part to China. Photo: AFP

Published: 8:02pm, 16 Jan 2024Updated: 8:56pm, 16 Jan 2024

Rio Tinto Group, the world’s top iron ore exporter, sees increased stimulus measures in China driving the broader economy into a gradual recovery this year.

China’s economy started to show signs of stabilising early in the fourth quarter as increased spending on infrastructure and manufacturing helped offset prolonged weakness in the beleaguered property sector, Rio said in a statement on Tuesday. Recovery in 2024 will be weighted toward the second half, with the real estate sector remaining weak, it said.

While prices of iron ore closed 2023 about 20 per cent higher, they’ve lost about 8 per cent so far this year amid lingering concerns about lacklustre Chinese demand as well as the nation’s struggling property sector.

The biggest metals-consuming nation’s disappointing post-pandemic recovery has put downward pressure on steel demand and iron ore prices.

There is good demand for the materials we produce, and our purpose and long-term strategy make more sense than ever

Jakob Stausholm, Rio Tinto CEO

“There is good demand for the materials we produce, and our purpose and long-term strategy make more sense than ever,” Chief Executive Officer Jakob Stausholm said in the statement.