Australia: Rio Tinto reports 13% rise in Pilbara iron ore output for Q1

• Simandou achieves first shipments; ramp-up underway
  
  
• FY'26 iron ore sales guidance unchanged at 323-338 mnt
  
  

Rio Tinto Plc reported a 13% rise in iron ore output to 78.8 million tonnes (mnt) from its Pilbara operations in Western Australia in Q1 FY'26, on the back of improved mine productivity and relatively fewer weather disruptions. On a q-o-q basis, output declined by around 12% against 89.7 mnt in Q4 FY'25 due to seasonal weather impacts. Meanwhile, sales rose 2% y-o-y to 72.4 mnt, although shipments were impacted by cyclone-related disruptions during the quarter. On a q-o-q basis, shipments fell by about 21% against 91.3 mnt in Q4 FY'25.

Production momentum remains healthy

Pilbara operations recorded their second-highest first-quarter output since 2018, reflecting strong operational performance and continued focus on mine health. However, tropical cyclones impacted shipments by around 8 mnt, with only partial recovery expected in the upcoming quarters.

At a broader level, global iron ore production rose 12% y-o-y to 82.8 mnt, indicating stable supply conditions. In contrast, IOC output declined 13% y-o-y due to adverse weather and asset reliability challenges, highlighting some regional pressures.

Meanwhile, Simandou marked a key milestone with initial shipments to China, with first sales realized in April. The project remains on track for ramp-up over the next 30 months as infrastructure development progresses.

On the demand side, China's crude steel output declined marginally by around 4.6% y-o-y in the first quarter ended 31 March. However, steady industrial activity and export demand continued to support iron ore consumption.

At the Iron Ore Company of Canada (IOC), pellet and concentrate output stood at 3.4 mnt (100% basis) in Q1 FY'26, down 13% y-o-y. The decline was driven by operational constraints, particularly lower ore feed due to ongoing mine health issues and equipment reliability challenges, which limited concentrator throughput. On a q-o-q basis, output fell by ~8% against 3.7 mnt in Q4 FY'25.

Moreover, shipments (sales) were recorded at 3.3 mnt, down 3% y-o-y, primarily due to reduced concentrator feed and throughput constraints.

All figures mentioned are on 100% basis, which means that the shipments include material transported from the Pilbara mines to the portside trading facility in China, which may not be sold onward by the group during the same period.

Shipments increase amid demand surge

Rio Tinto's Pilbara shipments reached 72.4 mnt in Q1 FY'26, up 2% y-o-y. Strong mine output supported volumes, though conversion to shipments remained constrained by a tightly balanced system. On a q-o-q basis, shipments declined by about 21% against 91.3 mnt in Q4 FY'25 following elevated dispatches in the previous quarter.

Guidance remains unchanged

The miner has maintained its FY'26 sales guidance at 323-338 mnt but expects volumes to trend toward the lower end following Q1 disruptions. With limited buffer in the system, any further weather-related impact could weigh on overall performance.