The world’s two biggest suppliers of iron ore, Rio Tinto Group and Vale SA, raised output of the steelmaking material last quarter, even as demand from China faces headwinds due to the nation’s unresolved property crisis.
Rio’s third-quarter output edged up about 1% from a year earlier, while Brazil’s Vale beat estimates to churn out its highest volume since late-2018, ahead of a dam-collapse disaster that triggered years-long disruptions.
Iron ore demand in top buyer China remains at risk due to a slump in its metals-intensive property sector, although that’s been partially offset by some corners of the manufacturing industry as well as surging exports of steel. Iron ore futures are down nearly a quarter this year as supply outpaces demand.
“China’s economic recovery has been uneven, prompting more government support to sustain growth,” Rio said in its production report. “As the economy transitions from the property sector to new growth areas, future commodity demand will turn more reliant on advanced manufacturing, including electric vehicles, and power infrastructure.”