The Mineral Resources Limited (ASX: MIN) share price is taking a beating today.
Shares in the S&P/ASX 200 Index (ASX: XJO) mining services company closed at $60.70 on Friday and are currently trading for $54.98. That puts the Mineral Resources share price down 9.4%.
So, what’s going on?
Resource outlook clouded by China’s slowing growth
First, it’s not just the Mineral Resources share price that’s under pressure today.
At time of writing the S&P/ASX 200 Resource Index (ASX: XJR) is down 5.2%.
This comes amid a global selloff in commodities and energy.
Copper, as one example, is down 3.3% overnight. That brings the red metal down 5.2% since this time last week.
Iron ore, Australia’s top export earner and a primary focus for Mineral Resources is taking an even bigger hit, down 9.7% to $US135.75 per tonne.
Meanwhile, energy producers haven’t been spared either, with Brent crude oil down 9% over the past week.
Resource prices are sliding amid fears that China’s economic growth will take a big hit from the nation’s zero-virus policy. As COVID-19 continues to spread, it appears that Shanghai may be in for extended lockdowns, hitting supply chains and crimping demand for commodities.
What else is impacting the Mineral Resources share price today?
Mineral Resources could also be under pressure following an ASX announcement this morning.
According to the release, the mining services company intends to offer US$1 billion of Senior Unsecured Notes. Mineral Resources said the notes will only be available to investors “reasonably believed to be qualified institutional buyers”.
The company plans to use the cash proceeds for “general corporate purposes, including for capital expenditures”.
Mineral Resources share price snapshot
With today’s intraday drop factored in, Mineral Resources shares are down 5.8% so far in 2022. By comparison, the ASX 200 is down 3.3% year-to-date.
Taking a step back, longer-term investors will have little to complain about.
Over the past 5 years, the Mineral Resources share price has gained 416%.