The Rio Tinto Limited (ASX: RIO) share price is in the red today.
Rio shares are down 1.85% and are currently trading at $90.88. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 0.2%.
Let's take a look at what might be affecting Rio Tinto shares.
What's going on?
The Rio Tinto share price may be down today, but it is not the only ASX mining share struggling. The BHP Group Ltd (ASX: BHP) share price is falling 1.79% at the time of writing, while Fortescue Metals Group Limited (ASX: FMG) shares are sliding 2.44%.
The S&P/ASX 200 Materials Index (ASX: XMJ) is 1.49% in the red today.
Rio, BHP and Fortescue are all huge producers of iron ore, which is used to make steel.
The iron ore November 22 contract on the Singapore Exchange is down 2.49% at the time of writing.
ANZ senior economist Catherine Birch highlighted "sentiment remains fragile" amid property sector concerns. In a research note this morning, Birch said:
Infrastructure is now becoming the most likely sector through which demand for steel and iron ore can receive a boost, but its impact on demand is waning.
In quarterly results last week, Rio Tinto reported a 4% boost in iron ore shipments to 82.9Mt. However, this was below consensus forecasts of 84.5 Mt, as my Foolish colleague James reported at the time.
Despite this, Morgans analysts recently reaffirmed an add rating on the Rio Tinto share price with a $108 price target. This is a nearly 19% upside on the current price. Analysts said:
Putting the 3Q22 result into perspective, we still see RIO boasting solid earnings quality, dividend yield, balance sheet strength and trading at a discount to our $108.00 Target Price. We maintain our Add rating.
Goldman Sachs analysts have also recently maintained a buy rating on Rio Tinto shares with a $112.90 price target.
Rio Tinto share price snapshot
Rio Tinto shares have lost nearly 6% in the past year, while they have descended 9% year to date.
For perspective, the ASX 200 has shed nearly 9% in the past year.
Rio Tinto has a market capitalisation of about $33.7 billion based on the current share price.
