• Rio Tinto (ASX: RIO) share price continues to decline on Monday (September 20, 2021)
• Current liquidation is caused by falling iron ore prices
• Meanwhile, rivals FMG and BHP also suffered steep drops of 11% and 4% each on Friday.
• Do you feel bullish or bearish about Rio Tinto stocks? Open an account with us to be long or short on the action today.

Rio Tinto share price: what’s new?

Rio Tinto shares fell another 5.5% on Monday morning, with the effects of falling iron ore prices remaining acute.

The mining security opened the session just below its previous close of A $ 98.80, only to drop to a midday low of A $ 93.42.

Iron ore prices, which peaked at US $ 233 per tonne in May, have plummeted since mid-July. Last week, the ore recorded its worst week since the 2008 global financial crisis, as its price was wiped out by 20%.

Iron ore was trading at a 14-month low on Monday at US $ 104.50 a tonne, a price point last seen in July 2020.

Current ore price levels are equivalent to a drop of about 55% from peak to trough – a massive collapse for arguably Australia’s most important export.

Due to the continued decline, Rio Tinto’s stock price has fallen almost 13% in the last month alone and 19% since the start of the year.

How do analysts perceive Rio Tinto?

UBS researchers reiterated a call for the “sale” of Rio Tinto, alongside a forecast that the price of iron ore will drop by around 10%.

“The correction in iron ore prices has proceeded faster than expected,” said UBS analyst Lachlan Shaw.

“We expect the iron ore market to become surplus in the second half of 2021, with prices falling below $ 100 per tonne over the next few months, before averaging $ 89 per tonne over the course of the next few months. the calendar year 2022. “

On the flip side, Macquarie analysts maintained a bullish stance on the Australian iron ore complex, maintaining “outperform” ratings for Rio Tinto and its competitors.

“We remain positive on stocks exposed to iron ore due to strong cash yields and improving earnings momentum,” the investment bank said.

Rio Tinto approves new solar farm

Shifting gears, Rio Tinto said on Monday it had approved a new solar farm and battery storage in Weipa, Queensland, “in a move that will more than triple the solar generation capacity of the local power grid. and help deliver cleaner energy to Rio Tinto operations. ” .

As part of these plans, EDL was contracted to build, own and operate a 4 MW and 4 MW / 4 MWh solar battery storage plant in Weipa.

Work on the battery installations will begin this year, with construction of the entire project expected to be completed by the end of 2022, the group said in a statement.

The new solar farm and battery storage will complement the existing 1.6 MW solar farm in Weipa, which was completed in 2015 and is also owned and operated by EDL.

The 4 MWh battery system will be built alongside the existing Weipa power plant and will help provide a stable power grid for the bauxite mines of Rio Tinto’s Weipa operations and Weipa Township.

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