Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF) maintained its production guidance for 2024 as China's economy Chine stabilises and as interest rates look to have peaked in the current cycle.
During the fourth quarter, the London-listed company said commodity prices “found some support” after global recession fears weakened and broad inflation decelerated - despite Chinese policy measures looming.
China is seeing some improvement in sectors like automotive and consumer goods, which are helping improve confidence and offset the struggling property market.
A “gradual recovery” is expected to occur in China during 202 but the group warned it could weighted to the second half.
Additionally, Rio Tinto reckons that interest rates may have peaked, and global supply chain challenges are beginning to subside.
However, the group is cautious of rising labour costs in “tight markets” such as Australia, the US, and Canada.
The mining giant expects its Pilbara operations to produce between 323 and 338mt of iron ore in the coming year, while mined copper is predicted to increase to between 660 and 720kt.
Iron ore shipments increased by 3% to reach 331.8Mt and mined copper production came in at the middle of guidance at around 620kt for the full year.
Bauxite production, which came in at the lower end of guidance at 54.6Mt in 2023, is expected to keep relatively flat at between 53 to 56Mt for the upcoming year.
Rio Tinto shares are up a little under 1% on Tuesday at almost 5,480p.