China steel demand continues to perform far beyond market expectations and continued strength in iron ore pricing via stimulus of construction activity in China, may underpin higher prices.
Our base case is that iron ore pricing is approaching a turning point with momentum in China port inventory drawdowns slowing and supply continuing to recover.
You're not a member! Trial today
The net effect on RIO will be the lack of near-term growth, will make it difficult for the company to offset commodity price-driven earnings decline.
RIO remains under Algo Engine sell conditions and we’ll revisit the buy-side later this year when we see the next Algo buy signal.
