Rio says fundamentals not speculators support metal prices

Rio Tinto’s chief executive Tom Albanese said that current strong metal prices are the result of strong fundamental dynamics not speculative buying. “Chinese GDP is continuing to grow at around ten per cent per annum, demand is strong while supply remains constrained. Fundamentals, not financial speculation, are driving the record prices we are realising across aluminium, copper, iron ore and coal and we see the same trends continuing into the future.” Rio Tinto yesterday published its Q2 production figures, showing record quarterly production of iron ore, mined copper and alumina. This is down to ”increasing investment in growth projects and a management commitment to deliver more tonnes faster, while maintaining our focus on safety and costs,” Albanese said. Source: Metalsinsider