Insights

Why is the BHP (ASX:BHP) share price slumping today?

BHP shares tumble as all-important copper and iron ore prices fall overnight.
The post Why is the BHP (ASX:BHP) share price slumping today? appeared first on The Motley Fool Australia. –

The BHP Group Ltd (ASX: BHP) share price tumbled in early trade today, sliding 3.2% to $37.25 within minutes of opening.

At the time of writing, shares in the iron ore major are down 2.31% trading at $37.59.

What’s driving the BHP share price lower?

Iron ore prices tumble

Iron ore prices slumped overnight, down US$7.14 or 5.8% to US$116.93 a tonne.

According to Fastmarkets, the downward price movement was largely aligned to the “bearish mood” in steel prices and demand.

In the futures market, China’s most active futures contracts for January 2022 delivery on the Dalian Commodity Exchange have opened lower on Friday, down 3.6% to 673 yuan (~US$105) a tonne.

Reuters yesterday reported weakness in China’s steel consumption, quoting analysts as saying stainless steel consumption was “still slow in the short term as recent power rationing has hurt manufacturing activities in the world’s second-largest economy”.

Headwinds impacting Chinese economy

On Monday, China reported a September quarter GDP growth of 4.9% year-on-year, the lowest since the third quarter of 2020.

The Chinese economy faced several headwinds in the last quarter ranging from its energy crisis to surging raw material prices.

Perhaps more relevant to the BHP share price, economic indicators such as factory output, investment in construction and other fixed assets all have weakened.

Chinese policymakers said on late Wednesday that it would ask futures exchanges to take measures to tackle surging coal prices, including raising fees and restricting trade limits.

Surging copper prices lose momentum

Also potentially adding to the BHP share price woes is the sudden reversal of fortune for copper.

Copper prices surged from US$4.09/lb to highs of US$4.82/lb in October as stockpiles hit a 47-year low.

However, copper spot prices fell sharply overnight, closing the session down 3.72% to US$4.55/lb. This is despite the world’s largest publicly listed copper player, Freeport-McMoRan Inc, advising it will producer less copper than expected.

The post Why is the BHP (ASX:BHP) share price slumping today? appeared first on The Motley Fool Australia.

Should you invest $1,000 in BHP right now?

Before you consider BHP, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and BHP wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

ASX 200 (ASX:XJO) midday update: BHP and Rio Tinto fall, Qantas higher

5 things to watch on the ASX 200 on Friday

Top broker upgrades BHP (ASX:BHP) share price to a buy rating

Top brokers name 3 ASX shares to buy today

These are the 5 highest yielding dividend stocks in the ASX 200

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!