Australian miners Rio Tinto and Fortescue post record iron ore shipments as China industrial recovery continues
- Rio Tinto and Fortescue Metals Group have seen a surge in iron ore shipments to China, as infrastructure and property construction drive demand for steel
- Rio Tinto says demand from China has absorbed the additional iron ore diverted from weaker steel markets in Europe and Asia
Australian mining giants Rio Tinto and Fortescue Metals Group have joined BHP Group in reporting record shipments of iron ore, the bulk of it to China, as an infrastructure and property construction boom in the world's second largest economy drives a rebound in steel production.
The companies have reported record earnings on the back of the iron ore shipments, even though exports of other minerals like aluminium and copper remain in the doldrums as the coronavirus pandemic saps global demand.
Rio Tinto reported on Thursday its iron ore shipments to China in the first half of the year rose 3 per cent compared to the same period a year-earlier.
The main market for our high-quality iron ore is China, which compared to the broader global economy has recovered exceedingly well
This pushed earnings up 2 per cent and allowed the Anglo-Australian miner to promise a US$2.5 billion dividend payout for shareholders.