Rio Tinto Plc: Iron Ore Prices Remain Strong Amid Tariff Concerns, Analyst Says

Rio Tinto Plc (RIO) stock forecasts indicate iron ore prices remain strong despite concerns over tariffs. Analysts believe Mineral Resources, Vale, and Deterra are undervalued. The company is a global diversified miner with iron ore as its dominant commodity.

Rio Tinto Plc (RIO) stock forecasts indicate that iron ore prices remain strong despite concerns over tariffs. Analysts believe that Mineral Resources, Vale, and Deterra are undervalued. The company is a global diversified miner with iron ore as its dominant commodity.

In the first quarter of 2025, Rio Tinto reported iron ore shipments of 70.7 million tons (Mt), a 9% decline year over year [1]. This was the lowest first-quarter shipment volume for the company since 2019. The decline was attributed to four cyclones during the quarter. Despite the challenges, Rio Tinto's bauxite production rose 12% to a record 15 Mt, and alumina production increased 3% to 1.9 Mt. Mined copper production was 210 kt, 16% higher than the year-ago quarter [1].

Analysts predict that iron ore prices will remain strong due to supply constraints and increasing demand from major economies. They believe that Mineral Resources, Vale, and Deterra are undervalued, presenting potential investment opportunities. Rio Tinto's stock has shown resilience, with a 14.3% decline compared to the industry's 16% decline over the past year [1].

In the past year, shares of Rio Tinto have lost 14.3% compared with the industry’s 16% decline. Image Source: Zacks Investment Research [1]

Rio Tinto currently has a Zacks Rank #3 (Hold). Some better-ranked stocks from the basic materials space include Carpenter Technology Corporation (CRS), Idaho Strategic Resources (IDR), and DRDGOLD Limited (DRD). CRS sports a Zacks Ranks #1 (Strong Buy) while IDR and DRD have Zacks Rank #2 (Buy) at present [1].

References:
[1] https://finance.yahoo.com/news/rios-q1-iron-ore-production-120200695.html