The Rio Tinto Limited (ASX: RIO) share price is stretching up in midday trading on Friday.
At the time of writing, shares in the diversified mining conglomerate are lifting nearly 2% higher at $93.13 apiece.
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What's up with the Rio Tinto share price?
Whilst there's been nothing price-sensitive released by Rio today, noteworthy is that the price of iron ore has made a sharp turn overnight.
Iron ore prices have suffered tremendously in 2022 amid weakening global demand, tightening monetary policy and a slowdown in China's property sector.
In yesterday's U.S. session however, iron ore futures lifted from 2-week lows as demand out of China showed signs of an improvement.
As Reuters reported, prices for the main ingredient in steelmaking rose 3.2% on Chinese exchanges and 2.8% on the Singapore Exchange.
This is backed by news the China Development Bank will increase the number of loans to local municipalities for infrastructure projects.
The moves come amid a weakened economic outlook in China following extended COVID-19 lockdowns and a slowdown in its property sector.
In addition, Rio made headlines yesterday after it announced the signing of a memorandum of understanding (MOU) with Shougang Group of China, to invest in the production of low-carbon solutions in steelmaking.
Rio has the aim of reducing scope 1 and 2 emissions by around 15% by 2025, and 50% by 2030 with $7.5 billion in investments allocated to the cause.
Therefore the MOU with Shougang is a step in the direction of achieving these goals.
Finally, Rio confirmed earlier this week that it will not make an improved offer on its acquisition price of Turquoise Hill Resources (NYSE: TRQ) after a large stakeholder said Rio had undervalued its assets.
Meanwhile, it's been a difficult year for the Rio Tinto share price. Over the past 12 months to date, it has slipped nearly 6% into the red and is down almost 7% since January.
