The S&P/ASX 200 Index (ASX: XJO) is having a decent, if not inspiring day of trading so far on the ASX this Wednesday. The ASX 200 is currently up by 0.08% to 7,428 points at the time of writing. But one ASX 200 sector that is not having a decent day is the ASX 200 resources sector.
ASX 200 resources shares are currently leading the ASX 200 losses today. And it's a trend that's being felt across the board.
Lithium producers like Pilbara Minerals Ltd (ASX: PLS) and Orocobre Limited (ASX: ORE) are leading these losses, down 2.7% and 4.5% respectively.
Gold miner Ramelius Resources Limited (ASX: RMS) is down by close to 3.5% while BlueScope Steel Limited (ASX: BSL) has lost 4%.
Woodside Petroleum Limited (ASX: WPL) is down by 1%.
And the big dogs of the ASX mining space – BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG) – have all shed between 1 and 2.5% so far today. As has Whitehaven Coal Ltd (ASX: WHC).
So what's going on here?
Image source: Getty Images
Why are ASX 200 resources shares dragging on the share market today?
Well, as you might expect, we can probably point to the commodity markets for most of these woes. With many commodities spending most of the first half of this year exploring record territories, the last month or two has seen this paradigm dramatically shift.
After hitting a new all-time high of roughly US$220 a tonne a few months ago, iron ore is now well under US$100 per tonne (US$93 to be exact).
Brent crude oil has slid more than 2% over the past day and is now at US$82.70 a barrel. And coal has also come off the boil, also down more than 2% to around US$141 a tonne.
Put simply, there's not a lot of good news in the commodities space today. And this is probably why we are seeing the ASX 200 resources sector lead the ASX 200 losses so far this Wednesday.
