Rio Tinto has ‘constructive’ outlook as Chinese steel demand is holding up

“We don’t have an energy business. If you take it to principles, we’re ultimately a trading business, so we produce in one area and trade in another, so [we] absolutely support free and open markets, and we’ll work with governments in each of the jurisdictions,” he said.

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However, the government’s energy bill has won support from large industrial energy consumers including the gas-intensive aluminium sector, which has faced skyrocketing fuel prices this year. The Australian Aluminium Council, which counts Rio Tinto among its members, this week said the government’s proposals struck an “appropriate balance” between maintaining the trust of key trading partners and global investors, and the needs of domestic consumers.

White Funds Management managing director Angus Gluskie said he thought demand for Rio’s iron ore would hold up in 2023, as China’s economy benefited from the end of COVID-19 lockdowns and a likely recovery in global trade.

“We do believe we are going into a period where growth, and demand for iron ore, will remain somewhat firm,” Gluskie said. “I think the medium-term benefits of lower COVID disruptions and global trade returning will outweigh the longer-term dynamic of maturing Chinese steel demand.”