Global miner Rio Tinto said on Tuesday that its second-quarter iron ore shipments from Australia rose 14 percent and indicated its annual production would be at the upper end of its guidance.
The miner said it expected iron ore shipments for the year to be at the upper end of its range of 330 million to 340 million tons, driven by productivity improvements and fewer weather-related disruptions compared with the same quarter last year.
It had said earlier it did not expect tensions over a global trade war to materially affect steel demand.
Each of the four big iron ore miners are expected to log record production in the second quarter, given a ramp up in China's steel demand in the quarter, Shipbroker Clarksons Platou Securities said.
"Volumes were generally held back a bit in the first quarter of 2018, as the Chinese steel complex was weaker [due to] winter production cuts, Chinese New Year and National People's Congress. As Chinese steel output increased to record levels in the second quarter, iron ore volumes picked up as well," it said in a report.
Rio's Australian iron ore shipments totaled 88.5 million tons in the quarter ending on June 30, compared with 77.7 million tons a year ago, the company said in a statement.
UBS had expected iron ore shipments to rise 14 percent for the quarter. Iron ore prices were flat over the quarter.
Rio also flagged "significant raw material cost headwinds" to its aluminum business given its exposure to soaring alumina prices, which are expected to continue into the second half.
