The Rio Tinto Limited (ASX: RIO) share price is set to finish the week in the green.
Since Monday, the iron ore mining outfit’s shares have risen more than 4% following an uptick in positive sentiment.
At the time of writing, Rio Tinto shares are currently edging 2.56% higher to $113.61.
For context, the S&P/ASX 200 Index (ASX: XJO) is also in the green, up 1.10% to trade at 7,183.8 points.
Let’s take a closer look at what’s driving the miner’s shares upwards lately.
Iron ore prices rebound
After hitting a near 3-month low of around US$123 last week, iron ore prices have staged a mini rebound.
According to Trading Economics, the steel making ingredient is currently fetching at US$130 per metric tonne. While there’s been no movement today, this represents a gain of approximately 5.6% over the week.
What’s causing iron ore prices to push higher?
The iron ore price has rallied due to global supply concerns from major producers, Australia and Brazil.
In addition, India lifted export duties for iron ore and steel intermediates to curb inflationary costs.
This has led to optimistic sentiment among investors for the steel making ingredient.
However, if global economic growth slows down, iron ore demand could wane leading to a retrace in prices.
Recently, the Chinese government cut borrowing rates in an effort to spur economic activity.
The country’s strict COVID-19 zero policy and property slump caused demand to slump in the construction sector.
As such, iron ore stockpiles at major Chinese ports fell for the eighth consecutive week.
Rio Tinto share price snapshot
It’s been a rollercoaster ride for Rio Tinto shares, having moved unpredictably over the past 12 months.
Its shares are down 5% since this time last year.
Based on valuation metrics, Rio Tinto presides a market capitalisation of approximately $42.17 billion.
The post Why is the Rio Tinto share price having such a strong end to the week? appeared first on The Motley Fool Australia.
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More reading
- What’s the outlook for ASX 200 dividend shares in the second half of 2022?
- Are ASX 200 mining shares good options for dividends?
- Can Rio Tinto shares deliver 20% growth AND a juicy dividend yield in the coming year?
- ASX shares paid out a record $98b in dividends in the 12 months to March. Which are the star performers?
- Analysts rate these ASX 200 dividend shares as buys
Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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