Movement Alert|Rio Tinto Rises 3.52% in Regular Trading, Global Aluminum Supply Crunch Drives Mining Sector Higher

Market Focus06-12

On June 11, Rio Tinto rose 3.52% in regular trading, trading at $103.02/share, with turnover of $189 million. The rally was broadly shared across the Diversified Metals & Mining sector, with Almonty Industries up 7.87%, HudBay Minerals up 7.58%, USA Rare Earth up 7.5%, BHP Billiton up 5.5%, and MP Materials up 5.2%.

On the news front, a global aluminum supply alarm has been triggered as Middle East conflict severely tightens market conditions. Rio Tinto and South32 have proposed record third-quarter aluminum supply premiums to Japanese customers at $460/ton and $480/ton respectively — more than $100 above second-quarter levels. Since the Iran conflict erupted in late February, the near-closure of the Hormuz Strait has cut off supply from a region representing approximately 9% of global capacity, with Gulf aluminum output plunging 35% in April. LME aluminum prices are approaching four-year highs, and JPMorgan forecasts the largest annual market deficit since 2000, projecting prices could reach $4,000/ton.

Separately, Rio Tinto announced the commissioning of its $1.5 billion AP60 smelter expansion in Quebec, deploying advanced low-carbon aluminum smelting technology with full completion expected by year-end.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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