Dan Coatsworth, head of markets at AJ Bell, said: “Comments from Rio Tinto CEO Simon Trott suggest merger talks with Glencore may have failed over price as he defended the company’s growth prospects as an independent entity.
“However, this message seems to have fallen on deaf ears as Rio’s large iron ore operations served up a disappointing performance.
“Reduced steel demand in China – thanks to a prolonged property market slump – is hurting this part of the business.
“A big driver behind the mooted tie-up with Glencore was the scramble for copper which is needed for the roll-out of AI data centres and infrastructure, and kit associated with renewable energy and electric vehicles.
“Growth in Rio’s copper revenues is not purely down to the big increase in prices but also to a meaningful increase in volumes as it ramps up production from its Oyu Tolgoi mine in Mongolia.
“Investors will hope there is some conservatism baked into copper output forecasts for 2026 given they imply some tailing off from the level achieved in 2025.
“Rio may face pressure to return to the idea of a combination with Glencore after the mandatory six-month cooling off period has expired later this year.”
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