Make Kitco Your Homepage

Rio Tinto shipping more aluminium to Europe as U.S. demand slows

Kitco News

MELBOURNE, May 9 (Reuters) - Rio Tinto has begun shipping more aluminium to markets like Europe to offset slowing demand from the United States partly caused by the trade dispute between China and the U.S., Chief Executive Jean-Sébastien Jacques said on Thursday.

Jacques said that demand for Rio Tinto's products had not been impacted by the dispute, which is threatening to escalate this week. Chinese Vice Premier Liu He is set for talks in Washington on Thursday and Friday with U.S. officials who have complained that Beijing has backtracked on earlier commitments.

An agreement could avert a sharp increase in U.S. tariffs on Chinese goods that President Donald Trump has threatened to impose on Friday. China has threatened to retaliate, raising the risk of an escalation in the trade war between the world's two largest economies.

"In the U.S., there is a slowdown in activities. I think it's fair to say the automotive (sector) is slowing down slightly, the construction is slowing down," Jacques said after Rio's annual general meeting.

"We are shifting some of our product from Canada to Europe, because there is some business case for it...or some other markets like Japan," he said, referring to Rio's aluminium business.

Rio Tinto earned $3.01 billion from its aluminium business last year. It produced 3.5 million tonnes of aluminium metal in 2018.

(Reporting by Melanie Burton; editing by Christian Schmollinger)

+613 9286 1421; Reuters Messaging:
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.