Strong Foundation for Growth, Decarbonisation and Shareholder Returns
Robust demand drives commodity prices
Iron Ore¹ (+48% YoY)
250
200
15 50
100
50
0
Jan-18
Jan-19
Aluminium² (+46% YoY)
Copper³ (+50% YoY)
3,700
900
500
800
450
3,200
700
600
400
2,700
500
350
400
2,200
300
300
200
1,700
250
100
1,200
0
200
Jan-18
Jan-19
Jan-20
Jan-21
Jan-20
Jan-21
Jan-22
LME Aluminium
----FY Average
Jan-22
MWP (RHS)
Jan-18
Jan-19
Jan-20
Price (c/lb)
Jan-21
--FY Average
Jan-22
----FY Average
Iron ore (US$/dmt)
Despite weaker demand and mill operating restrictions
during H2, China's FY21 crude steel production
exceeded 1Bnt for the second time in history. Demand
recovery in the rest of world maintained its momentum
Combined shipments of the major low-cost producers
remained below FY18 volumes for the third
consecutive year
Less high-cost supply was needed to balance the
market during H2 21, while prices declined 25% half on
half
Strong global demand recovery led by packaging,
transport and building and construction
Increase in global deficit on extensive power related
smelter curtailments in China and Europe
Lower global inventories supportive of high market
and product premiums
Exchange inventories declined to multi-year lows
Demand grew strongly through 2021 with a pick-up
in the rest of the world in H2
Mine supply returned to growth, but many regions
continued to face headwinds from lingering effects
of COVID-19, workforce constraints and adverse
weather conditions
1 Monthly average Platts (CFR) index for 62% iron fines | 2 Average LME price. MWP = Mid-West premium | 3 Average LME price | YoY = change in annual average price. Source: Rio Tinto
Rio Tinto
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