S&P/ASX 200 Index (ASX: XJO) mining stocks are having a day to forget today.
In afternoon trade the ASX 200 is down 0.2%.
But the big mining shares are falling a lot harder, as witnessed by the 1.4% decline in the S&P/ASX 200 Resource Index (ASX: XJR).
Here is how the top ASX mining stocks are tracking:
- Rio Tinto Ltd (ASX: RIO) shares are down 1.8%
- BHP Group Ltd (ASX: BHP) shares are down 1.6%
- Fortescue Metals Group Ltd (ASX: FMG) shares are down 1.5%
So, why such a dour end to the trading week?
ASX 200 mining stocks tumble alongside iron ore and copper
All of the above ASX 200 mining stocks derive the majority of their revenue from iron ore.
Copper also adds a significant amount of revenue for the miners.
And the price of both metals took another steep fall overnight.
The iron ore price dropped a precipitous 5.2% to US$97.90 per tonne. That's at a new six-month low. And it puts the iron ore price down 27% since 15 March.
That's the lowest price for the industrial metal since mid-November. And it was only on 15 March that iron ore was trading for just US$134.04 per tonne.
As you'd expect, the ASX 200 mining stocks have also seen their share prices drop over that period.
As for copper, the red metal fell 3.7% overnight to US$8,163.50 per tonne. Copper hasn't dropped as quickly as iron ore but is now down 10% since mid-March.
The price of both metals has come off the boil over the past weeks amid weaker-than-forecast demand from China.
The sluggish pace of China's reopening, according to analysts at Citi could see the iron ore price slide to US$90 per tonne before finding support.
Another 9% drop in iron ore from here would throw up some unwelcome headwinds for the ASX 200 mining stocks.
But on the plus side, they're looking like ever better bargains after the last month's sell-off.
