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RIO - Rio Tinto News Story

6135p -169.0  -2.7%

Last Trade - 14/05/21

Sector
Basic Materials
Size
Large Cap
Market Cap £99.32bn
Enterprise Value £103.19bn
Revenue £31.65bn
Position in Universe 13th / 1826

BUZZ-Tangshan emission curbs could signal 'major' headwinds for iron ore market - MS

Thu 18th March, 2021 2:43am
** Morgan Stanley says anti-pollution measures in China's
top steelmaking city of Tangshan could be the beginning of
"major" iron ore market headwinds, potentially taking it from a
significant deficit to balance
    ** Tangshan recently pledged to cut emissions by 50% during
the heavy pollution period and punish those who fail to
implement production curbs  urn:newsml:reuters.com:*:nL4N2LC018
    ** With potential for other regions to adopt similar
measures as Tangshan, we expect this could result in a tighter
domestic steel market in China - MS
    ** Adds strict environmental supply-side controls could cut
blast furnace production capacity, improving steel mill
profitability and alleviating iron ore market pressure
    ** Says this could lead closer to balance iron ore market
and high mill profitability, hurting lower-grade producers such
as Fortescue Metals Group  FMG.AX  and Mineral Resources
 MIN.AX  
    ** In broker's base case, FMG's dividend yield falls from
13% in FY21 to 8% in FY22,and MIN's from 7.2% in FY21 to 4% in
FY22

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