BHP Billiton Limited's (ASX: BHP) shares have been hit hard over the last week or so as pressures continue to mount on the volatile iron ore price.
The stock fell below $36 for the first time in over two months yesterday after trading at $38.10 on Wednesday last week. While it has recovered slightly to be sitting at $36.19, it is still down nearly 5% since the beginning of the year while the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) has edged 2.1% higher.
Although BHP Billiton doesn't rely on iron ore anywhere near as much as rivals Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG) do, the commodity still remains its primary generator of revenue. Currently priced at US$94.50 a tonne, BHP will still maintain a solid margin, but nowhere near as strong as when iron ore was trading for US$135 a tonne through 2013.
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Although BHP's shares are trading at a more attractive price now than at the end of last year, the strong headwinds facing the industry are likely to push the share price even lower over the coming weeks or months. I would be waiting for a more attractive entering point before hitting the "buy" button on the miner.
