Iron Ore Price Dips To Six-Month Low

The share prices of BHP, Rio Tinto, and Fortescue Metals will come under further pressure today after global iron ore prices fell another 6% on Wednesday to their lowest level in six months.

The pressures will come despite a rise on Wall Street overnight and a 2.7% gain on the overnight ASX 200 futures market.

The Metal Bulletin’s Fastmarkets price for 62% Fe ore lost $US5.56 a tonne to end at $US82.38, the lowest level since March. The Platts price for similar type ore fell to $US83 a tonne.

Wednesday’s fall takes the slide since the peak of around $US125 a tonne on July 2 to 30% and rising.

BHP shares shed 2.9% on Wednesday to close at $35.25 reacting to price falls in iron ore futures markets in the afternoon and the warning issued with the 2018-19 results on Tuesday about the potential damage the Trump-inspired trade war could do the health of the Chinese economy and therefore demand for commodities such as iron ore, copper and oil.

BHP shares hit six months low this week in the wake of the full-year result as investors realised the profit and record dividends for the year were as good as it will get in this mini-price boomlet. The shares have fallen14.7% so far in August up to the close on Wednesday.

Rio shares fell 2.6% on Wednesday to end at $83.70 – around $20 under the most recent peak reached in early July. The shares have fallen 16.7% so far in August.

Fortescue shares dipped 4.1% on Wednesday to $7.27 and are also down 16.7% so far this month.

Glenn Dyer

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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