Mineral Resources leading losses as iron ore price fall
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More news: Lithium and iron ore miner Mineral Resources was leading losses on the ASX 200 in afternoon trading as iron ore prices continued sliding on weak demand and as Citi analysts dropped their price forecasts.
At 2:29pm AEST Mineral Resources’ share price had fallen 4.9% to $22.52, leading losses on the ASX 200.
Iron ore futures on the Singapore exchange had fallen 0.46% to US$92.35 ($142.01) per tonne.
Citi analysts have downgraded its base three month price forecast from US$100 to US$90 and its six-to-12 month forecast from US$90 to US$85.
Earlier this week, Mineral Resources joint venture partner Ganfeng Lithium announced to the Hong Kong exchange that the ASX-listed miner would inject an additional $150 million to keep its Mt Marion Lithium operation afloat amid prolonged low lithium prices.
Fortescue shares among biggest losers as iron ore futures dip
The news: Fortescue is among the biggest losers on the ASX as iron ore futures slip amid a seasonal slow down and signs Chinese steel mills are slowing output.
The numbers: At 12:40pm AEST shares in Fortescue had fallen 4.7% to $14.92. Other major miners of iron ore also saw their share price drop with Rio Tinto falling 0.8% to $106.90 and BHP falling 1.5% to $36.74.
On the Singapore stock exchange the iron ore index futures price had fallen 0.68% to USD92.15 ($141.71) per tonne, pointing to its lowest close since September 2024.
The context: On Monday, the National Bureau of Statistics of China released data that indicated production from Chinese mills went backwards. Steel output was lower in May than April and had fallen around 7% when compared to the previous year.
Demand for steel has also slowed as construction is affected by the rainy season in southern China and high temperatures in the north, according to a note from the Shanghai Metals Market.
