London, January 27, 2026, 08:29 GMT — Regular session
- Rio Tinto slipped roughly 0.8% in early London trading
- HSBC downgrades rating to “hold,” keeping Glencore talks under the spotlight
- Iron ore futures slip once more amid renewed concerns over China’s demand
Shares of Rio Tinto (RIO.L) dropped 0.8% to 6,622 pence during early trading in London on Tuesday. (London South East)
The pullback comes as the clock ticks down on Rio’s next move in its talks with Glencore (GLEN.L). Investors view a potential merger as the biggest near-term catalyst for the stock. Under UK takeover rules, Rio must announce a firm intention to bid for Glencore or confirm it will not by 5 p.m. London time on Feb. 5. (Rio Tinto)
Disclosures tied to that process continued Tuesday. A Form 8.3 filing on the exchange news service revealed Perpetual Limited holds 2.03 million shares in Rio Tinto plc. The filing also mentioned ongoing disclosures related to Glencore. (London South East)
Broker moves added pressure. HSBC cut Rio Tinto to a “hold” from “buy,” though it left the price target steady at 69 pounds, MT Newswires said Monday. (MarketScreener)
Iron ore prices took another hit in Asia, posing a challenge for a firm still reliant on steelmaking raw materials for its profits. The most-active iron ore futures in Dalian edged down 0.44% to 788.5 yuan per tonne. Meanwhile, the benchmark price in Singapore held near $103.6, according to Reuters. (Business Recorder)
In London, miners helped steady the broader market early this week, boosted by strong metals prices and demand for commodity stocks. On Monday, industrial metal miners gained 0.9% in the UK, according to Reuters. (Reuters)
Rio faces a busy run of company-specific catalysts even if no deal materializes. After last week’s quarterly production report topped expectations, Barrenjoey analyst Glyn Lawcock noted, “The key for Simon in my mind, is delivery on what he promised us in December which is the cost-out program.” The company plans to release its unit cost performance and 2026 forecast alongside full-year results on Feb. 19. (Reuters)
Risks remain significant. A Glencore merger would almost certainly trigger intense regulatory review. Reuters reports the firms might have to offload assets to ease China’s worries over market dominance and resource security. (Reuters)
Traders are eyeing Feb. 5 as the crucial deadline for Rio to either make a firm offer or retreat. The next update on cash costs and guidance won’t arrive until Rio’s full-year results drop on Feb. 19.
