It has been another disappointing day for the BHP Group Ltd (ASX: BHP) share price.
In afternoon trade, the mining giant’s shares are down 3% to $39.80.
This means the BHP share price is now down over 6% since this time last week.
Why is the BHP share price under pressure?
Investors have been selling the Big Australian’s shares following further weakness in the iron ore price.
According to Metal Bulletin, the benchmark iron ore price fell a further 5.5% to US$109.40 a tonne during overnight trade.
This has been driven by continued softness in downstream demand in China despite the announcement of accelerated fiscal expenditure, as well as the sale of infrastructure-related government bonds.
Global recession fears may also be weighing on commodity prices. For example, other base metals also took a tumble last night. This includes aluminium falling 2.2%, copper dropping 2.5%, nickel sinking 5.8%, and tin tumbling 7.2%.
Other miners follow suit
It isn’t just the BHP share price that has dropped into the red today. Fellow mining giants Fortescue Metals Group Limited (ASX: FMG), Rio Tinto Limited (ASX: RIO), and South32 Ltd (ASX: S32) are also trading lower and dragging on the ASX 200 index.
This has led to the S&P/ASX 200 Resources index losing 2.7% of its value so far today.