September has been a terrible month so far for the Rio Tinto (ASX:RIO) share price

Down more than 17% year to date and 13% just this month, the mining giant is tackling a few headwinds.

| More on:
A sad Carnaby Resources miner holds his head in his hands

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Rio Tinto Limited (ASX: RIO) share price has had a tough time this month.

After closing yesterday's session at $95.71, shares in the mining giant have now tanked more than 13% in September.

Let's take a closer look.

Why is Rio Tinto coming under so much pressure?

Several catalysts appear to be weighing down the Rio Tinto share price, including the plunging iron ore price.

The iron ore price dropped to $US90 a tonne yesterday, marking a 60% decline since its record high in May. With Chinese demand for the commodity dampening, the Rio Tinto share price has headed south as well.

According to Reuters, China released a report stating its steel output reached its lowest point since March 2020 last month.

This impacts Australia's iron ore miners greatly as around 80% of the iron ore exported from Australia goes to China, according to the Minerals Council of Australia.

In addition, shares in Rio Tinto have also been spooked recently by fears that one of China's biggest property developers could go under.

How did Rio Tinto perform in FY21?

Shares in Rio peaked immediately after the company released its half-year report for FY21.

For the 6 months ending 30 June, the mining giant reported a 71% increase in consolidated sales revenue of US$33.1 billion.

Thanks to surging iron ore prices, the miner recorded a 262 increase in free cash flow of US$10.2 billion.

As a result, Rio Tinto declared a fully franked interim dividend of $3.76 per share, plus a special dividend of US$1.85 per share.

Rio Tinto share price snapshot

Since reporting its half-year results, shares in Rio Tinto have come under pressure.

At one point in August, the Rio Tinto share price was flying more than 16.5% higher year to date.

However, shares in the mining giant recently broke below $100 for the first time since November 2020.

As a result, the Rio Tinto share price has given back much of its gains and now is trading more than 17% lower for the year.

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Fallers

Disappointed man with his head on his hand looking at a falling share price his a laptop.
Share Fallers

Why APA, Flight Centre, Reece, and Transurban shares are falling today

These shares are having a tough finish to the week. But why?

Read more »

Frustrated and shocked business woman reading bad news online from phone.
Share Fallers

Why Bannerman Energy, Life360, Strike Energy, and Xero shares are tumbling today

These shares are under pressure on Thursday. But why?

Read more »

Cheerful boyfriend showing mobile phone to girlfriend in dining room. They are spending leisure time together at home and planning their financial future.
Share Fallers

Why DroneShield, Neuren, Paradigm, and Pilbara Minerals shares are roaring higher today

These shares are having a strong session on Thursday. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Betr, Develop Global, Northern Star, and Paragon Care shares are dropping today

These shares are having a tough time on hump day. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why APA, DroneShield, EOS, and Woodside shares are tumbling today

These shares are missing out on the good times on Tuesday.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Adairs, ANZ, Aurelia Metals, and Pilbara Minerals shares are falling today

These shares are having a tough start to the week in the red. But why?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why ANZ, Clarity, IGO, and Pilbara Minerals shares are dropping today

These shares are ending the week in the red. But why?

Read more »

Three guys in shirts and ties give the thumbs down.
Share Fallers

Why Aurelia Metals, Centuria Office, Meeka Metals, and Resolute shares are tumbling today

These shares are having a tough time on Thursday. Let's find out why.

Read more »