The Rio Tinto Limited (ASX: RIO) and BHP Group Ltd (ASX: BHP) share prices finished in the red today.
Rio Tinto and BHP shares fell 1.37% and 1.44% respectively. For perspective, the S&P/ASX 200 Index (ASX: XJO) jumped 0.23% today.
So what went on with the Rio Tinto and the BHP share prices?
Tough day for commodity prices
Rio and BHP are both copper and iron ore producers among other metals. In global markets overnight, copper fell to US$3.3 a pound. This is the lowest level in 20 months, according to data from trading economics.
COVID-19 BA.5 sub-variant lockdowns in China, the "top consumer" of copper, also appeared to weigh on investors' minds.
In a research note today, ANZ economist Madeline Dunk said copper "led" the base metals sector lower. She added:
Expectations of another increase in inflation rose ahead of the release of US CPI data. This was exacerbated by further lockdowns in China.
Copper ended the session down more than 3% to hit its lowest level since November 2020.
Goldman Sachs analysts also cut their price target on copper, according to mining.com. Analyst Nicholas Snowdown cited factors including the dollar and global energy squeeze, according to the publication.
Meanwhile, iron ore prices also plunged to US$107.50 per tonne, down 4.44%. China is also a major importer of iron ore. Fears of weaker demand from China appear to have driven down the price.
Share price snapshot
The Rio share price has shed nearly 27% in the past year and lost 6% year to date.
Meanwhile, the BHP share price has lost 18% in the past year and 0.09% year to date.
Both Rio and BHP are big dividend payers, as my Foolish colleague James has highlighted recently.
For perspective, the S&P/ASX 200 Index (ASX: XJO) has shed nearly 10% in a year.
