Iron ore prices for July 29, 2020:
Chinese demand still looks good:
Brazil still looks bad:
RIO loves it:
Rio Tinto says China’s heavy industry is working at full speed and the Chinese economy could grow at up to 8 per cent next year, fuelling demand for Australian commodities like iron ore.
China has responded to the coronavirus pandemic with infrastructure stimulus that has driven demand for iron ore to record highs and lifted Rio to a better than expected $US4.75 billion ($6.6 billion) half-year underlying profit.
Iron ore delivered more than 90 per cent of Rio’s earnings and enabled the company to pay its second-biggest interim dividend in history.
Rio exercised caution with a $US1.55 a share dividend, paying 53 per cent of earnings, down from 70 per cent last year.
8% is silly. But empty apartment to the moon and that’s all that matters.