Rio Tinto (ASX:RIO): Overall Long Term Demand Upbeat
Sydney, July 14, 2010 AEST (ABN Newswire) - Rio Tinto (ASX:RIO) said in its second quarter 2010 operations review that markets for most of the products are strong and the overall long term demand outlook is positive.
Rio Tinto's iron ore production fell 2 per cent in the second quarter 2010 compared with same period last year. The first half production was 15 per cent higher than the first half of 2009 when markets were recovering from the global financial crisis. Hard coking coal production in the second quarter grew 26 per cent on the same period last year, and 29 per cent on the first quarter.
The Pilbara iron ore mines were operated at close to its capacity during the quarter. Agreements were signed with around 50 per cent of Asian customers for pricing on a quarterly basis.
The company expects its iron ore production for its Australian and Canadian operations to be approximately 234 million tonnes.
Chief Executive Tom Albanese said fears about a possible double-dip recession in OECD countries and a slight slowdown in Chinese economy growth have led to some weakening in sentiment in recent weeks. The company believes this pattern of volatility in the global economy will continue.
Asia Business News Asia Bureau
Rio Tinto Limited