Why are ASX 200 mining shares getting blasted on Wednesday?

It’s a bloodbath among S&P/ASX 200 Index (ASX: XJO) mining shares today, with many of the market’s biggest materials stocks tumbling.

Stock in resources giant BHP Group Ltd (ASX: BHP) is plummeting 2.1% at the time of writing.

Its heavyweight peers, Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG), are also suffering. Their share prices have fallen 1.45% and 2.2%, respectively.

So, what’s weighing on most of the market’s favourite ASX 200 mining shares today? Let’s take a look.

ASX 200 mining shares tumble on Wednesday

The ASX 200 is suffering on Wednesday, having fallen 1.4% right now. And the S&P/ASX 200 Materials Index (ASX: XMJ) is among its worst performing sectors.

The materials sector is currently down 1.69%, with only a few stocks defying its sell-off.

Lithium stocks Lake Resources NL (ASX: LKE) and Core Lithium Ltd (ASX: CXO) are currently in the green, lifting 1.66 and 1.67% respectively.

The share prices of Lynas Rare Earths Ltd (ASX: LYC), Incitec Pivot Ltd (ASX: IPL), and Orora Ltd (ASX: ORA) are also gaining, having risen 0.89%, 0.68%, and 0.31% respectively.

But, aside from a select few, most ASX 200 mining shares are tumbling lower.

Their suffering follows a rough night for commodity prices. While certain base metals, including copper, lead, and nickel, posted slight gains overnight, iron ore slumped.

Iron ore futures fell 0.9% to US$97.61 a tonne amid continuing reports of COVID-induced lockdowns and restrictions in China. Gold futures, however, lifted 0.6% to US$1,712.90 per ounce.

Today’s worst performing ASX 200 mining share is Chalice Mining Ltd (ASX: CHN). Its share price has dumped 12.13% at the time of writing.

The post Why are ASX 200 mining shares getting blasted on Wednesday? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• The Fortescue share price has cratered 13% in a week. What’s going on?
• Could this be a blow to the fortunes of Fortescue Future Industries?
• Own BHP shares? Here’s how much the ASX 200 giant added to the Aussie economy in FY22
• What are brokers saying about the BHP share price?
• Rio Tinto share price lower despite Turquoise Hill agreement

Motley Fool contributor Brooke Cooper 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.

from The Motley Fool Australia https://ift.tt/uAqLjBM