RIO TINTO has delivered its strongest first‑half Pilbara iron‑ore output since 2018, reinforcing steady vessel demand and uninterrupted export flows through WA’s bulk ports — but the miner has warned that port outload capacity will tighten from late 2026 as major infrastructure works begin.
The company shipped 85.3 million tonnes of Pilbara iron ore in the June quarter, up 7% year‑on‑year and the highest quarterly sales since 2020, supported by strong system performance and healthy stock levels.
First‑half production reached 162.3 million tonnes, a 6% lift on last year, with Rio reporting no material disruption to outbound supply chains.
Average realised prices rose to US$85.2/t FOB, up from US$83.2/t, helping offset cost pressures from a sharp rise in diesel. The ASX filing shows diesel climbed from US$85 to US$140 a barrel, adding US$0.80/t to Pilbara unit costs, with Rio estimating that every US$10/bbl increase adds ~$0.15/t to full‑year costs.
Rio confirmed that Pilbara port outload capacity will fall below 360 Mtpa during parts of H2 2026, 2027 and 2028 as major capital works proceed at Parker Point, including reclaimer upgrades designed to improve long‑term flexibility and prepare for Rhodes Ridge.
It signals tighter ship‑loading windows, potential scheduling congestion and short‑term constraints on export cadence.
Despite this future squeeze, current export flows remain robust. Cyclone‑related disruptions in Q1 left Rio with higher iron‑ore inventories, contributing to a $1.2 billion working‑capital outflow, but those stockpiles are now being drawn down as port operations normalise.
Portside trading volumes in China fell sharply to 2.9 Mt in Q2, down from 7.8 Mt a year earlier. The drop indicates more Pilbara ore is being shipped directly to customers rather than routed through Chinese blending hubs — reinforcing strong throughput at WA ports.
Rio continues to monitor volatility in the Strait of Hormuz, where war has pushed up global oil prices. The company says operational impacts remain limited, with no effect on Pilbara shipping cadence or supply continuity.
Simandou shipped 1.6 Mt in Q2 (100% basis), with 0.4 Mt sold after tertiary crushing in China. The new West African supply is entering the market, but Rio’s Pilbara volumes remain unaffected.
Rio Tinto chief executive Simon Trott said the group’s scale and diversified supply chains underpinned resilience during the period, noting strong operational performance despite geopolitical uncertainty.
Rio shares last traded at $165.03, up 0.9%.