市场见解

The BHP (ASX:BHP) share price is down 5% in a week, what’s next?

Why the iron ore giant’s shares were under pressure last week.
The post The BHP (ASX:BHP) share price is down 5% in a week, what’s next? appeared first on The Motley Fool Australia. –

The BHP Group Ltd (ASX: BHP) share price slumped 5.4% lower last week in a disappointing week for shareholders. Let’s see what’s moving the Aussie mining giant’s shares right now and what lies ahead in 2021.

Why the BHP share price is down 5% in a week

Last week was a relatively big one for the iron ore giant. For starters, BHP provided an update on its Western Canada potash mine on Wednesday.

The BHP share price slipped lower despite the company outlining what it expects from the Jansen Mine in Saskatoon, Canada.

BHP expects to generate an earnings before interest, tax, depreciation and amortisation (EBITDA) margin of circa 70% from the mine, which is forecast to be paid back 7 years after operations commence.

The company is hoping operations will start in early 2027 and bring a globally diverse customer base, increasing BHP’s operating footprint and providing greater immunity from economic cycles.

Another factor moving the BHP share price last week was falling iron ore prices. Iron ore prices have now slipped by more than 20% in a month and have nearly halved since hitting US$233 per tonne in May.

The sharp decline is, perhaps unsurprisingly, largely being driven by China. According to Reuters, China released a report stating its steel output reached its lowest point since March 2020 last month.

That was disappointing news for the Aussie iron ore giant and its investors with the BHP share price sliding lower to end the week.

What’s next for BHP?

Perhaps the biggest news ahead for BHP is its proposed petroleum division merger with Woodside Petroleum Ltd (ASX: WPL). The two ASX giants are aiming to create a global, top-10 independent energy company by production with the transaction.

As with any resources share, underlying commodity prices will play a role in how the BHP share price fares in the near term. Investors will be watching China’s next moves closely for signs of strength or weakness in iron ore imports in 2021.

The post The BHP (ASX:BHP) share price is down 5% in a week, what’s next? 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

5 things to watch on the ASX 200 on Monday

BHP (ASX:BHP) shares are down 20% in a month. Here’s why it’s not all bad news for investors
How has the BHP (ASX:BHP) share price performed since reporting results?
ASX 200 resources giants lift despite plummeting iron ore price

2 ASX 200 blue chip shares analysts rate as buys

Motley Fool contributor Ken Hall 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.

随时随地,交易世界!

移动APP平台,拥有 12 个市场的 50,000 多种全球上市证券(全球市值超过 70%),直接在您的 Android 或 iOS 设备上即可操作。

与独有的交易理念和投资分析工具相结合,帮助您在我们 12 个全球市场中的几乎所有金融工具上找到可操作的见解,从而帮助您优化交易策略。

推荐给您的朋友

向您的朋友推荐Monex并赠予他们免费使用我们交易工具的机会

我们尊重您的隐私,只会向您的朋友发送一封邮件 

与您的朋友分享

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!