t was made clear in the presentation that copper would be the frontrunner in many of Cyprium’s future projects, with the company intending to focus on Australian projects with ‘existing copper resources with growth potential’.
BHP’s fall could be partly due to a statement made by a Chinese official Friday afternoon, confirming plans of cracking down on the excessive costs of the steel-making ingredient.Given the fact that China is the world’s biggest steel producer, it was inevitable that there would be ripple effects from the inquiry, hitting not only BHP but also Rio Tinto, whose share price fell 0.50%. Both Aussie companies produce a lot of iron for the world market and China is one country with high demand for it.
According to the Australian Financial Review (AFR), a top official on behalf of China’s steel industry said Beijing was getting ready to crackdown on soaring prices.Iron ore market has also been hit by supply disruptions, as weather plagues supply chains. Last month Rio Tinto cut production outlook after issues with its mine, adding further to supply shortages.
Building on its multi-month highs, iron ore prices have risen 8% this month, and over 50% this calendar year, to reflect a post-market buying frenzy over supply issues.Australia’s top export reached US$110.20 on SPGlobal’s iron ore index (IODEX), the highest in five years dating back April 2014.
Over the last six months, BHP Group Ltd [ASX:BHP] shares have been rising comfortably.Yesterday, BHP’s share price was sitting at $39.66, up 2.49%. But when markets opened today BHP shares had fallen 0.63% to 39.45, at the time of writing.
Iron ore prices continue to rise, with 58% fines leading the way as the Chinese economy continues to maintain its strength, despite the threat of more tariffs.
Shares in eternal favourite BHP Group Limited [ASX:BHP] have fallen gradually after today’s market open, and are currently sitting at $38.36 a share, down 0.34%.
The latest news out of the company is its quarterly activities report which reveals the extent of the disruption caused by Cyclone Veronica. We will look at the outlook for its share price.
At time of writing, there have been broad-based gains for blue chip stocks and the ASX 200 is up 39.2 points.
Iron ore spot prices are up again, close to a multi-year record on weather disruptions in China and Australia. The share prices of Fortescue Metals Group Ltd and Rio Tinto Ltd could benefit.