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.
The share price of diversified mining giant Rio Tinto Ltd [ASX:RIO] has come under pressure today. At the time of writing, Rio was down $3.01 to trade at $103.26, a loss of 2.83%.
Shares of minerals and iron ore giant Rio Tinto Ltd [ASX:RIO] have fallen 4.68% in London overnight, with shares trading on the ASX continuing the trend. In an update released this morning, Rio announced it had been expecting mine operation challenges, largely centred in the Greater Brockman hub in the Pilbara region.
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.
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.
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.
The latest news out of the company is the release of its first quarter production results which reveal reduced iron ore shipments. We will have a look at Rio Tinto’s prospects going forward.
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.
The major iron ore miners have had a good day today. The gains can be attributed to two events in two countries - China and Brazil.