Rio Tinto Changes Iron Ore Forecast, Australia Exports to China Up

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Rio Tinto plc recently changed its iron ore outlook due to what the company said is lower Chinese demand and projected commodity prices.

“Mr David Joyce chief of Rio Iron Ore Development said that ‘With this development, the lower end of the projected annual exports for iron ore could go down to 300 million tonnes in 2018 from the previous forecast of 360 million in May provided by Mr Sam Walsh CEO of Rio Tinto,'” according to ibtimes.com via Steel Guru.

However, in the nearer term, Chinese iron ore demand appears solid, according to Reuters. “Iron ore exports to China from Port Hedland, which handles about a fifth of the global seaborne market for the steel-making raw material, rose 9 percent in August from July.”

Today’s Steel and Raw Material Prices

On Wednesday, September 4, the day’s biggest mover was the steel billet 3-month price, which saw a 18.8 percent increase on the LME to $190.00 per metric ton. Also on the LME, the cash price of steel billet rose 3.6 percent to $145.00 per metric ton.

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Chinese steel closed mixed yesterday. The prices of iron ore 58% fines from India kept rangebound. Chinese slab finished the day down 0.3 percent. The price of Chinese HRC was essentially unchanged.

The US HRC futures contract 3-month price showed little movement on Wednesday, hovering around $628.00 per short ton. The spot price of the US HRC futures contract saw little movement yesterday at $645.00 per short ton.

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