PRE-MARKET AUSTRALIAN STOCKS NEWS: Rio Tinto (RIO AT) Q3 Pilbara iron ore output fell 1% Y/Y to 83.4mln tons, Pilbara iron ore sales rose 2% Y/Y to 85.7mln tons, global iron ore output rose 2% to 89.7mln tons, global iron ore sales rose 3% to 90.8mln tons

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PRE-MARKET AUSTRALIAN STOCKS NEWS: Rio Tinto (RIO AT) Q3 Pilbara iron ore output fell 1% Y/Y to 83.4mln tons, Pilbara iron ore sales rose 2% Y/Y to 85.7mln tons, global iron ore output rose 2% to 89.7mln tons, global iron ore sales rose 3% to 90.8mln tons

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Rio Tinto (RIO AT) - Co. Q3 Pilbara iron ore output fell 1% Y/Y to 83.4mln tons, Pilbara iron ore sales rose 2% Y/Y to 85.7mln tons, global iron ore output rose 2% Y/Y to 89.7mln tons, global iron ore sales rose 3% Y/Y to 90.8mln tons, copper output unchanged Y/Y at 205k tons, bauxite output fell 4% Y/Y to 15.7mln tons, alumina output rose 10% Y/Y to 2.1mln tons, aluminium output fell 2% Y/Y to 800k tons, lithium carbonate equivalent output rose 4% Y/Y to 13k tons; maintains FY global iron ore sales guidance of 343-366mln tons and unit cost guidance, with FY lithium output expected at the lower end of 61-64k tons. (Dow Jones Newsplus)

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Other News

CBA said Australian growth is slowing and inflation remains too high, while higher interest rates will take time to bring inflation back within the target range.

Context

Quarterly Pilbara production reports from the big three Australian miners are routine set-pieces whose signal is usually read through the sales-versus-output split and the guidance line rather than the raw tonnes. A quarter in which shipments outpace mined output, as here, is typically digested as a drawdown of port and stockpile inventory, and episodes of that kind have tended to be neutral-to-supportive for the seaborne iron ore complex absent a guidance change; maintained guidance, as in this report, usually caps the price reaction in both directions. The detail that has historically mattered more is unit cost commentary, since Pilbara margins are the swing variable for Rio's earnings mix, and cost guidance being held is the anchor. Watch items of this type are the ramp-up of replacement projects needed to offset depleting hubs, the Simandou first-ore trajectory as the group's next volume lever, and Chinese steel demand and port stock data, which dominate the demand side of the 62% Fe benchmark. The mixed base-metals lines (copper flat, bauxite lower, alumina higher) are second-order versus iron ore for this name. Peer reports from the other Pilbara majors in the following sessions set the read-across for the complex.

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