Rio Tinto, a mining company, reported a 29 percent decline in first-half earnings due to lower iron ore prices brought on by a slowing in demand from main client China, greater expenses, and labor shortages.
Due to ongoing concerns about Chinese demand, the world's largest producer of steel, iron ore prices have been under considerable pressure recently. China's zero-COVID policy has been weighing on ferrous markets and limiting economic activity.
In addition, pandemic-related shortages of trained laborers and soaring inflation have caused problems for mining corporations all across the world at a time when iron ore prices have fallen from their 2021 highs and are anticipated to stay low.
According to Rio Tinto CEO Jakob Stausholm, "the market climate has gotten increasingly difficult towards the conclusion of the term."
One of the largest producers of iron ore in the world, the firm reported an underlying profit of USD 8.63 billion for the six months that ended on June 30. This is down from a record USD 12.17 billion and a company-compiled projection of USD 8.37 billion, respectively.
The materials and information on this article have been prepared or assembled by Viet Nam Steel and are intended for informational purposes only.