The S&P/ASX 200 Index (ASX: XJO) is climbing 1.25% today, but some ASX 200 mining shares are underperforming the index.
BHP Group Ltd (ASX: BHP), Mineral Resources Ltd (ASX: MIN) and Iluka Resources Limited (ASX: ILU) are all in the red at the time of writing.
So why are these shares having a tough day on the market?
Iron ore prices
BHP shares are 0.72% in the red, while Mineral Resources shares are descending 1.62%. Iluka Resources shares are slipping 0.26%.
The iron ore price dropped 3.67% in global markets on Friday, trading economics data shows.
BHP and Mineral Resources are iron ore producers. Iluka also receives iron ore royalties.
Iron ore prices dropped on recession fears, according to a report from Reuters.
Commenting on this fall, ING commodities strategy head Warren Patterson said:
It's not just China where steel output is under pressure.
Expectations of slowing economic growth, and the growing risk of recession, are clearly not great for global steel demand.
Meanwhile, iron ore prices are predicted to fall from the "extraordinary levels" of the past two financial years, a new Resources and Energy quarterly report states.
Commenting on the iron ore prices in the report, the Industry, Science and Resources department said:
The price has steadied in a US$110-140 a tonne range in recent months, as China's government continues to support economic activity.
However, the ongoing recovery in Brazilian supply, and gains in output elsewhere, are set to push iron ore prices down over the outlook period.
Share price recap
BHP shares have lost 8% in a year, while Mineral Resources shares have shed 18%. In contrast, Iluka Resources shares have jumped 12% in the past year.
In comparison, the S&P/ASX 200 Index (ASX: XJO) has lost more than 9% in a year.
