Australia: Rio Tinto's iron ore shipments drop marginally y-o-y in H1CY'24, guidance intact

Rio Tinto, the world's leading iron ore miner, recorded iron ore shipments at 158.3 million tonnes (mnt) for first half of calendar year 2024 (H1CY'24), down by 2% y-o-y as compared to 161.6 mnt in H1CY'23. Shipments, on a quarterly basis, increased by 3% to 80.3 mnt against 78 mnt in first quarter of calendar year 2024 (Q1CY'24). The reduction in port stocks led to SP10 volumes making up 17% of shipments in the second quarter, similar to levels seen earlier in 2024.

All figures mentioned are on 100% basis, which means that the shipments include material shipped from the Pilbara mines to the portside trading facility in China which may not be sold onwards by the group during the same period.

Iron ore production dips 2% in H1CY'24

The total iron ore production marked a 2% drop to 157.4 mnt in H1CY'24 as against 160.6 mnt in H1CY'23. The impact of ore depletion was mitigated by increased productivity. However, production and shipping were hampered by a train collision in mid-May, resulting in lost rail capacity for approximately six days and maxed-out mine stockpiles.

Meanwhile, production increased by 2% q-o-q as compared to 77.9 mnt in Q1CY'24.

IOC pellet production up in H1CY'24

The Iron Ore Company of Canada's (IOC's) iron ore pellet and concentrate production in H1CY'24 was recorded at 4.8 mnt, up by 5% y-o-y as production rates in the prior period were impacted by wildfires.

On a quarterly basis, output decreased by 16% as compared to 2.6 mnt in Q1CY'24.

Key updates

• The company's Pilbara iron ore shipment guidance for CY'24 remains stable at 323-338 mnt. This guidance remains subject to the timing of approvals for planned mining areas and heritage clearances.
  
  
• At IOC, the iron ore pellet and concentrate production guidance for CY'24 also remains unchanged at 9.8-11.5 mnt.