0108 GMT - Rio Tinto's initial estimate of 3-4 weeks of downtime for the EII car dumper suggests that 3-4 million metric tons of iron ore shipments could be impacted in 1Q 2025, RBC Capital Markets analyst Kaan Peker says in a note. "The Pilbara is mine-constrained, not port-constrained, so we think CY25 shipments are likely to be made up in 2H," Peker says. "However, from a product quality and equity volumes perspective, the impact from downtime at EII is more meaningful than the headline number would suggest in 1Q," as the EII port is solely used to ship Rio's Pilbara Blend lump and fines, not its lower-grade products. Peker reckons a risk premium may now get priced into iron-ore markets, particularly for mid-grade products such as Pilbara Blend.(rhiannon.hoyle@wsj.com; @RhiannonHoyle)
(END) Dow Jones Newswires
January 23, 2025 20:08 ET (01:08 GMT)
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