The Rio Tinto Limited (ASX: RIO) share price is struggling to entice buyers as it hovers around 10-month lows of $106.73.
Image source: Getty Images
What's next for the Rio Tinto share price?
Brokers think it's time to sell
In the Motley Fool's latest brokerage notes for Rio Tinto, UBS analysts are sell-rated with a $102.00 target price.
The broker flagged that Rio Tinto might miss its iron ore production guidance for the calendar year.
This view is consistent with the company's mixed half-year results commentary.
Rio said that iron ore shipments decreased 3%, driven by "lower production following sustained wet weather, particularly at West Pilbara and Robe Valley operations, shutdowns to enable new replacement mines to be tied in, processing plant availability and cultural heritage management".
UBS also noted rising supply and falling demand for iron ore as another drag on the Rio Tinto share price.
Iron ore weakness to persist
Iron ore prices have plunged in recent weeks, in the wake of China's plans to curtail its steel production.
An article featured on Mining.com said the Chinese government had asked major producers in Tangshan city to "suspend operations for a week in August in order to reduce emissions as the Chinese steel sector makes up 15% of the country's total carbon emissions".
The article also quoted analysts from UBS who warned about weaker iron ore prices in the near term.
In a broker note, the UBS analysts said: "We expect China's steel curtailments to be targeted in 4Q when demand slows seasonally and air pollution is in focus (especially ahead of the Winter Olympics in Feb-22) and as a result we expect prices to stabilize in Sept/Oct before continuing to fall back below $100/tonne in 2022."
Rio Tinto share price snapshot
In late July, the Rio Tinto share price hit a new all-time record of $137.33.
