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RIO - Rio Tinto News Story

6533p 56.0  0.9%

Last Trade - 10:25am

Sector
Basic Materials
Size
Large Cap
Market Cap £104.86bn
Enterprise Value £108.78bn
Revenue £32.13bn
Position in Universe 12th / 1819

BUZZ-Berenberg sees weaker commodity prices in H2 on risks to stimulus, recovery hopes

Wed 7th April, 2021 10:24pm
** Berenberg sees upside to commodity prices in the
near-term on higher demand expectations are revised higher and
the "upbeat playlist" of stimulus measures and recovery optimism
continues 
    ** However, says should there be any signs of slowdown in
China and if there is a lack of further infrastructure heavy
stimulus, some of the enthusiasm for global growth expectations
may come off, driving weaker prices
    ** This, coupled with our expectation that supply is rising,
drives weaker price forecasts in H2- broker
    ** Cuts gold price forecast for 2021 to 1,663/oz and for
2022 to 1,600/oz
    ** Expects copper prices to trend lower over 2021 and into
2022/23
    ** Says optimistic on the iron ore market balance for 2021,
driven by stronger-than-expected steel production from China
    ** Takes a more cautious stance on nickel and aluminium,
with both markets in surplus 
    ** Remains hold-rated on Rio Tinto  RIO.AX  and BHP Group
 BHP.AX  
    ** Sees scope for Rio to rebound after a bout of weakness,
but highlights risks including Oyu Tolgoi challenges and ESG
headwinds, which could affect production over time
    ** Cuts PT on ASX-listed shares of gold miner Resolute
Mining  RSG.AX  to A$0.80 from A$1.40 

 (Reporting by Shruti Sonal in Bengaluru)
 ((Shruti.Sonal@thomsonreuters.com; Twitter: @shrutisonal26))
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