Its Western Australian operations were impeded by an increase in Covid-19 cases as the state border reopened, which tightened the labour supply.
Rio said it expected commodity demand to remain boosted by growth-focused policies in China and the global green energy transition, despite the disruptions.
“Rio Tinto produced somewhat of a soggy market update that is largely indicative of broader iron ore supply issues globally that could struggle to meet recovering China demand,” Jamie Maddock, equity research analyst at Quilter Cheviot, said.
“Those supply issues, coupled with Beijing’s efforts to stimulate the economy, will also likely result in higher prices despite iron ore prices having already risen 30% in 2022.”