Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF)'s share price rose almost 3% on a more upbeat outlook about China from the miner.
Iron ore accounts for more than 80% of Rio’s underlying operating earnings and the miner expects prices to rise as demand from China, its main customer, starts to recover.
In line with that, Rio reiterated earlier guidance of iron ore shipments of 323 million to 338 million tons in 2024, or close to its record annual output.
Medium-term iron ore shipment guidance remains 345 million to 360 million tons a year.
Rio's guidance came despite production falling across all metals it produces in its latest first quarter.
Weather disruptions at ports and lower output from some of its Pilbara, Western Australian mines saw iron ore production drop 11% from the previous quarter to 78 million tonnes while the amount shipped dropped 10%.
Copper and aluminium output also fell but by less as the Oyu Tolgoi mine in Mongolia started its underground ramp-up and recycler Matalco’s production picked up.
Aluminium volumes are close to record levels noted broker Jefferies, which said the price of the metal is now starting to rise.
Shares rose 169p to 5,410p on Wednesday.
