Rio Tinto Vs. Vale: Inventory Doesn't Lie

(9min)

Summary

  • Since my last analysis, new tariffs announced by President Trump have added additional – and large – uncertainties to mining stocks.
  • I expect high tariffs to disrupt global trade flows, decrease demand for basic metals, and increase operational costs for both RIO and VALE.
  • As a reflection of these macroscopic pressures, the latest data show that both companies are experiencing elevated inventory.
  • The inventory build up is even more concerning in the case of VALE.
  • Looking for a helping hand in the market? Members of Envision Early Retirement get exclusive ideas and guidance to navigate any climate. Learn More »
La Cour Rio Tinto sign at their office in Montreal, QC, Canada.

JHVEPhoto

RIO and VALE stock: latest inventory data in focus

I last covered Rio Tinto (RIO) stock on Feb 4, 2025 with a hold thesis. That article, titled “Rio Tinto: Why I Disagree With Wall Street”, presented a contrarian view against

Join Envision Early Retirement to navigate such a turbulent market.

  • Receive our best ideas, actionable and unambiguous, across multiple assets.
  • Access our real-money portfolios, trade alerts, and transparent performance reporting.
  • Use our proprietary allocation strategies to isolate and control risks.

We have helped our members beat S&P 500 with LOWER drawdowns despite the extreme volatilities in both the equity AND bond market.

Join for a 100% Risk-Free trial and see if our proven method can help you too. You do not need to pay for the costly lessons from the market itself.

This article was written by

9.61K Followers

Sensor Unlimited is an economist by training with a PhD, with a focus on financial economics. She is a quantitative modeler and for the past decade she has been covering the mortgage market, commercial market, and the banking industry. She writes about asset allocation and ETFs, particularly those related to the overall market, bonds, banking and financial sectors, and housing markets.

Sensor Unlimited contributes to the investing group Envision Early Retirement which is led by Sensor Unlimited. They offer proven solutions to generate both high income and high growth with isolated risks through dynamic asset allocation. Features include: two model portfolios - one for short-term survival/withdrawal and one for aggressive long-term growth, direct access via chat to discuss ideas, monthly updates on all holdings, tax discussions, and ticker critiques by request. Learn More.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About RIO Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on RIO

Related Stocks

SymbolLast Price% Chg
VALE
--
RIO
--