ASX 200 mining shares, including the major iron ore miners, closed lower on the market on Thursday.
The S&P/ASX 200 Materials Index (ASX: XMJ) finished the day 2.03% in the red.
BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO), and Fortescue Metals Group Ltd (ASX: FMG) were among the shares to slide.
Let's take a look at what weighed on these ASX 200 mining stocks today.
What happened?
BHP, Rio Tinto, and Fortescue are all major iron ore producers. BHP shares dropped 2.56% today, while Fortescue shares slid 0.88%. Rio Tinto shares also shed 2.32%.
Iron ore futures for a June 2023 contract (China 62% Fe Fines) are down 1.48% to US$113.15 a tonne on the Singapore Exchange at the time of writing. This is the lowest level since 5 January.
News has also emerged out of China that the country will "speed up" iron ore projects to secure domestic supply, according to Reuters, citing reports by mining.com.
China is the world's largest importer of iron ore, so any increase in domestic production could mean it is less dependent on iron ore from overseas.
The copper price is also down 0.16% to US$4,0652 a pound, Trading Economics data shows.
Commenting on the fall in commodities, in a research note today, ANZ economist Adelaide Timbrell said:
Base metals fell sharply in early trading as the weak economic data hurt market sentiment. This was exacerbated by hawkish comments from the Fed following data showing wage gains in the US are outpacing inflation. This could see central banks continuing to raise interest rates.
However, the sector recovered late in the session as the focus returned to supply side issues.
Meanwhile, Rio Tinto provided a first-quarter update to the market this morning. Pilbara iron ore shipments lifted 16% compared to the first quarter of 2022, marking a new first-quarter record. However, shipments were still down 6% compared to the fourth quarter of 2022.
Share price snapshot
The BHP share price has lost 1% in the last year. Rio Tinto shares have lifted 1.7% in the past 12 months year, while Fortescue shares have returned 3%.
