It has been another disappointing day for the BHP Group Ltd (ASX: BHP) share price.
In afternoon trade, the mining giantâs shares are down 3% to $39.80.
This means the BHP share price is now down over 6% since this time last week.
Why is the BHP share price under pressure?
Investors have been selling the Big Australianâs shares following further weakness in the iron ore price.
According to Metal Bulletin, the benchmark iron ore price fell a further 5.5% to US$109.40 a tonne during overnight trade.
This has been driven by continued softness in downstream demand in China despite the announcement of accelerated fiscal expenditure, as well as the sale of infrastructure-related government bonds.
Global recession fears may also be weighing on commodity prices. For example, other base metals also took a tumble last night. This includes aluminium falling 2.2%, copper dropping 2.5%, nickel sinking 5.8%, and tin tumbling 7.2%.
Other miners follow suit
It isnât just the BHP share price that has dropped into the red today. Fellow mining giants Fortescue Metals Group Limited (ASX: FMG), Rio Tinto Limited (ASX: RIO), and South32 Ltd (ASX: S32) are also trading lower and dragging on the ASX 200 index.
This has led to the S&P/ASX 200 Resources index losing 2.7% of its value so far today.
The post Here’s why the BHP share price is in the red today appeared first on The Motley Fool Australia.
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More reading
- ASX 200 midday update: Pilbara Minerals’ lithium price update, BHP tumbles
- Why we just bought these 3 ASX shares: fund
- 5 things to watch on the ASX 200 on Thursday
- Could China âsteelâ the show for the iron ore price?
- BHP share price claws back half of Mondayâs losses on Tuesday
Motley Fool contributor James Mickleboro 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 Scott Phillips.
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