Iron Ore
Shares of leading iron ore mining companies dropped in Australia, with BHP Group, Fortescue Ltd. and Rio Tinto Group all declining.
Year-to-date the iron ore trade stands at 41 million tons, a decrease of 2.1 percent compared to the same point in 2023.
The business also reinforced its forecast for iron ore shipments for the current fiscal year.
If there is a positive from the September steel production data, it's that the pace of decline slowed from the 10.4% on-year drop in August.
Copper production increased by 4% to 476 kt during the quarter as a result of the mine's better performance at the Escondida location in Chile.
According to Rio Tinto, the company is still on pace to start producing iron ore from its Simandou project in Guinea early in 2019.
Iron ore has been in retreat for most of 2024 as a slowdown in China, including a property crisis, hobbles domestic demand for steel.
The anticipation of China's fiscal measures is driving an uptrend in commodity prices, affecting not just iron ore and steel, but also increasing prices for inputs like coking coal and coke on the Dalian Exchange.
Beijing unleashed a slew of support measures — including interest-rate cuts and targeted support for the property sector — late last month, driving sharp gains in global metals prices.
The key risk remains a possible drop in exports due to a decline in steel production in China.
Australian iron ore miners are also developing high-grade operations overseas.
The deal comes as Mineral Resources’ net debt has rapidly risen, as it builds its Onslow mine along with a haulage road.
Outside of China, it notes that steel production and demand for iron ore remain muted as of the first half of 2024.
The recent sell-off has pummeled miners’ shares, with stock in BHP Group Ltd. down by more than a fifth in Australia this year.