LONDON, June 12, 2026, 12:02 BST
- Rio Tinto’s London-listed shares were quoted higher late Friday morning, outperforming the FTSE 100.
- A new China Baowu trial strengthens the long-term case for Pilbara iron ore in lower-carbon steelmaking.
- Investors’ next key catalyst is Rio’s July production update, followed by half-year results.
Rio Tinto plc shares rose in London on Friday, with Barclays’ delayed market data showing the stock at a 7,732p sell price and 7,734p buy price at 11:46 BST, up 137p, or 1.80%. The move outpaced the FTSE 100’s 1.12% gain and came as the UK mining sector advanced 3.69%, suggesting the rally was not only company-specific but also part of a wider rotation into miners.
The latest company news was supportive for sentiment, though not a near-term earnings event. Rio Tinto and China Baowu said they completed industrial-scale pelletisation and hydrogen-based direct reduction trials in China using Rio’s Pilbara Blend iron ore. Direct reduced iron, or DRI, is iron made by removing oxygen from ore before steelmaking, and it is important because it can lower emissions when paired with cleaner energy and electric smelting technology.
Rio Tinto Iron Ore Sales and Marketing Vice President Ramona Sim said the trials showed Pilbara Blend could play a “critical role in lower carbon steelmaking.” That matters for the stock because Rio’s Pilbara franchise is still central to the investment case, and investors have been watching whether mid-grade Australian ore can remain relevant as steelmakers try to reduce blast-furnace emissions. Rio Tinto
Commodity prices remain the bigger short-term driver. Reuters reported on June 11 that iron ore has been relatively steady despite Middle East conflict, with Singapore iron ore contracts trading in a narrow range around $105 a tonne this year and ending at $101.65 a tonne on June 10. China’s iron ore imports rose 6.3% year-on-year in the first five months of 2026, but May official imports fell 6% from April, while port inventories remained elevated compared with last year.
Copper adds a second, more volatile lever. Reuters reported that London Metal Exchange three-month copper slipped 0.32% to $13,572 a metric ton on June 10, with macro concerns and Middle East volatility offsetting support from possible U.S. copper tariffs. Copper is crucial for Rio’s growth narrative because it is used in power grids, electrification and industrial equipment, but higher interest rates and weaker manufacturing expectations can quickly pressure metal demand.
The bull case is that Rio has a large, cash-generative iron ore base, rising exposure to copper, and a clearer low-carbon steelmaking story after the Baowu trial. The company’s first-quarter update showed 9% year-on-year copper-equivalent production growth, 13% higher Pilbara iron ore production, and unchanged 2026 guidance for Pilbara iron ore sales of 323 million to 338 million tonnes and consolidated copper production of 800,000 to 870,000 tonnes.
The bear case is valuation and cyclicality. Hargreaves Lansdown data put Rio’s price-to-earnings ratio at 15.22 and dividend yield at 3.88%; a price-to-earnings ratio compares the share price with annual earnings, while dividend yield measures annual dividends as a percentage of the share price. Analyst consensus also looks cautious: Investing.com shows a Neutral rating from 20 analysts, with 13 holds, five buys and two sells, while Investors Chronicle data showed the median 12-month target close to recent trading levels.
Rio Tinto looks fairly valued today rather than clearly cheap. The shares remain attractive for investors who want diversified exposure to iron ore, copper, aluminium and dividends, but the risk-reward is not one-sided after the recent rally. The next major catalyst is Rio’s 2026 Second Quarter Operations Review on July 15, followed by 2026 half-year results on July 29, when investors will be watching Pilbara shipments, copper output, cost inflation, and any update on capital returns.
