The BHP Group Ltd (ASX: BHP) share price had a tough day on the market today.
BHP shares fell 1.52% to close at $46.08. For perspective, the S&P/ASX 200 Index (ASX: XJO) climbed 0.31% today.
Let's take a look at what impacted the BHP share price today.
What's going on?
BHP is not the only ASX iron ore share that struggled today. The Fortescue Metals Group Limited (ASX: FMG) share price slid 4.21% today, while Rio Tinto Ltd (ASX: RIO) shares dropped 1.93%.
The S&P/ASX 200 Materials Index (ASX: XMJ) slid 1.4%, making it the worst-performing sector on the market.
BHP, Rio, and Fortescue are all among the top iron ore producers in the world.
Iron ore futures on the Singapore Exchange is down 2.28% to US$106.90 at last look.
The share price of the largest iron ore producer in the world, Vale SA (NYSE: VALE), also dropped 4.19% on the New York Stock Exchange overnight.
Navigate Commodities managing director Atilla Widnell said iron ore at more than $100 a tonne seems "overvalued" currently. In quotes cited by Hellenic Shipping News, Widnell added:
The longer prices persist above this level there's an increasing likelihood the pricing-floor may start to move higher.
Iron ore futures rallying to close at $111.75/t on Friday is yet another poignant example of just how much heat and overly positive sentiment is currently built in to the current pricing structure.
Macquarie analysts have recently retained an outperform rating on BHP shares with a $50 price target. The team lifted their price target to reflect higher-than-expected iron ore prices.
BHP share price snapshot
The BHP share price has risen 26% in the last year, as shown in the graph below. It is also up by more than 9% in the past month.
BHP has a market capitalisation of about $233 billion.
