On Thursday, the S&P/ASX 200 Index (ASX: XJO) recovered from its lows but just fell short of positive territory. The benchmark index was down 4.3 points to 7,193.1 points.

Will the market be able to bounce back from this on Friday? Here are five things to watch:

ASX 200 expected to fall again

The Australian share market looks set to end the week in the red following another poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 15 points or 0.2% lower this morning. In the United States, the Dow Jones was down 0.9%, the S&P 500 fell 0.7%, and the NASDAQ dropped 0.5%.

ANZ half-year results

The ANZ Group Holdings Ltd (ASX: ANZ) share price will be one to watch today when the banking giant releases its half-year results. According to a note out of Goldman Sachs, its analysts are expecting the bank to report cash earnings growth of 27.8% to $3,978 million. This is ahead of the consensus estimate of $3,769 million. An interim dividend of 80 cents per share is expected. Macquarie Group Ltd (ASX: MQG) is also releasing its results today.

Oil prices mixed

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a subdued finish to the week after a mixed night of trade for oil prices. According to Bloomberg, the WTI crude oil price is down 0.2% to US$68.46 a barrel and the Brent crude oil price is flat at US$72.33 a barrel. Demand concerns continue to weigh on sentiment.

Gold price rises

Gold shares Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a decent finish to the week after the gold price charged higher overnight. According to CNBC, the spot gold price is up 1% to US$2,056.7 an ounce. Concerns over the US banking sector has lifted the safe haven asset to within sight of a record high.

NAB shares remain a buy

Analysts at Goldman Sachs have retained their buy rating on National Australia Bank Ltd (ASX: NAB) shares despite being disappointed with its half-year results. Goldman has a buy rating and trimmed price target of $30.69 on its shares. This implies potential upside of almost 15% for investors over the next 12 months.

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• St Barbara share price jumps 10% on Silver Lake proposal
• Why CogState, Jumbo, Magellan, and St Barbara shares are rising today
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why Genesis Minerals, NAB, oOh!Media, and Super Retail shares are sinking today

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 positions in and has recommended Macquarie Group. 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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If you’re an income investor looking for dividends to boost your income, then you may want to consider the ASX shares listed below.

Both of these ASX dividend shares have been rated as buys and tipped to provide investors with attractive yields in the coming years.

Here’s what you need to know about these shares:

Dexus Industria REIT (ASX: DXI)

The first ASX dividend share that has been tipped as a buy is this industrial and office property company.

Macquarie is positive on the company and has an outperform rating and $3.28 price target on its shares.

Its analysts believe Dexus Industria’s earnings profile is superior to most of its peers. This is due to its development pipeline and being leveraged to industrial rental growth.

As for dividends, the broker is forecasting dividends per share of 16.4 cents in FY 2023 and 16.7 cents in FY 2024. Based on the current Dexus Industria share price of $2.85, this will mean yields of 5.75% and 5.85%, respectively.

Suncorp Group Ltd (ASX: SUN)

Another ASX dividend share that has been tipped as a buy is Suncorp. It is one of Australia’s leading insurance and banking companies.

Morgans is a fan of Suncorp and currently has an add rating and $14.44 price target on its shares.

As well as the potential benefits from its efficiency program, the broker likes Suncorp due to its attractive valuation and generous yield. It highlights that “[w]ith SUN trading on 11.5x FY24F earnings and a 6% dividend yield, we see it as reasonable value at current levels.”

Morgans is forecasting fully franked dividends per share of 77.7 cents in FY 2023 and 87.8 cents in FY 2024. Based on the current Suncorp share price of $12.36, this will mean yields of 6.3% and 7.1%, respectively.

The post Brokers say these ASX dividend shares are top buys appeared first on The Motley Fool Australia.

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More reading

• Down 37% in a year, fundie says Block shares offer ‘very attractive rate of return’
• Why did the A2 Milk share price sink 7% in April?
• Analysts name 2 ASX 200 dividend shares to buy for passive income
• Here are the top 10 ASX 200 shares today
• St Barbara share price jumps 10% on Silver Lake proposal

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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Block Inc (ASX: SQ2) shares have well and truly been hammered over the last 12 months.

As you can see on the chart below, during this time, the payments giant’s shares have lost over two-thirds of their value. This follows weakness in the tech sector and concerns over a short seller report by Hindenburg research.

Is the Block share price weakness a buying opportunity?

QVG Capital’s portfolio manager of the long-short fund, Josh Clark, appears to believe that investors should be taking advantage of the weakness in the company’s share price.

Given that Clark goes both long and short with stocks, it may be comforting to learn that he isn’t concerned by the short seller report.

In fact, the portfolio manager believes the report has done investors a favour by dragging Block shares down to an attractive level. He told the AFR:

Despite the length of the short report, it failed to raise many novel points and found nothing existential. We view the report as a sideshow that has created a value opportunity as most of the concerns raised have natural counterpoints.

Clark then went on to explain why Block could be a great long-term pick for investors. He adds:

The short answer as to why Block is still a good bet is that it is an innovative banking solution for individuals and small business in a US banking system that is archaic in its experience. Block isn’t burdened by the corporate structure, legacy technology and costly network that its competition suffers from. We see a very attractive rate of return without heroic assumptions for future growth or margin.

Is anyone else bullish on Block?

Clark isn’t alone in believing that Block shares could be good value at the current level.

According to a recent note out of Citi, its analysts have a buy rating and US$90 (A$134) price target on its shares.

Based on the current Block share price, this implies potential upside of almost 50% for investors over the next 12 months.

The post Down 37% in a year, fundie says Block shares offer ‘very attractive rate of return’ appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Why Block, Nanosonics, Pilbara Minerals, and Weebit Nano shares are racing higher
• Why is the Block share price tumbling 6% today?
• Why 29Metals, Block, Champion Iron, and Zip shares are dropping today

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 positions in and has recommended Block. The Motley Fool Australia has positions in and has recommended Block. 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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The A2 Milk Company Ltd (ASX: A2M) share price had a tough time in April.

During the month, the infant formula company’s shares lost almost 7% of their value.

This means A2 Milk shares are now down almost 23% since the start of the year.

Why was the A2 Milk share price under pressure in April?

The A2 Milk share price was trading largely flat for much of the month until the release of an announcement late on.

That announcement was made in response to a profit guidance downgrade by its dairy processing partner, Synlait Milk Ltd (ASX: SM1).

Synlait pointed the finger at A2 Milk for its downgrade, which led to the infant formula company responding with a trading update.

A2 Milk revealed that it has lowered its total forecast production volume needs for English label consumer-packaged infant milk formula by ~1,650 metric tonnes for the period March through to June.

This was driven by significant daigou weakness, inventory build-up, and distribution model adjustments. The broker explained:

This is mainly due to: continued weakness in the ANZ Daigou / reseller market which is down 49% in the most recently reported quarter from Kantar; the impact of significant cumulative delays in English label consumer-packaged IMF deliveries from Synlait to a2MC over an extended period expected to be fulfilled in 4Q234 resulting in a material amount of inventory arriving within a relatively short period which needs to be managed; and ongoing refinement of the Company’s English label distribution model resulting in more customers and distributors being supplied directly out of Hong Kong and China leading to lower future a2MC and channel inventory requirements.

And while A2 Milk reaffirmed its previous guidance for FY 2023, albeit at the low end of its range, investors appear to be wondering what the above means for its performance in FY 2024.

This uncertainty appears to be weighing heavily on sentiment and ultimately the A2 Milk share price.

The post Why did the A2 Milk share price sink 7% in April? appeared first on The Motley Fool Australia.

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• Dalio says US and China ‘on brink of war’. Which ASX shares could be impacted?
• Here’s what this top broker thinks of the A2 Milk share price after recent weakness
• Why A2 Milk, Mesoblast, Mineral Resources, and Synlait shares are sinking
• A2 Milk share price on watch following worrying update
• The A2 Milk share price has fallen 16% in around two months: Time to buy?

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 recommended A2 Milk. 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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The good news for income investors is that there are a large number of ASX 200 stocks that share a good portion of their profits with shareholders. This makes the share market a great place to generate passive income.

But which ASX 200 shares would be good options right now for a passive income boost? Two that have recently been rated as buys are named below:

BHP Group Ltd (ASX: BHP)

If you’re not averse to investing in the mining sector, then BHP could be a top option for income investors. That’s because this mining giant has been tipped to provide investors with some very big dividend yields in the near future.

For example, a note out of Goldman Sachs from this morning reveals that its analysts are forecasting fully franked dividend yields of 7% in FY 2023 and 5.6% in FY 2024. This means that $10,000 invested could provide passive income of $700 and $560, respectively.

Another positive is that the broker also sees scope for the BHP share price to rise from current levels. It currently has a buy rating and $49.90 price target on its shares. This implies potential upside of 13.5% over the next 12 months.

Centuria Industrial Reit (ASX: CIP)

Another ASX 200 dividend share that could provide investors with a source of passive income is Centuria Industrial.

It is an industrial-focused property company that owns a portfolio of 88 high-quality, fit-for-purpose industrial assets worth a total of $3.9 billion. These assets are in-demand with users thanks partly to being situated in key in-fill locations and close to key infrastructure.

UBS is very positive on the company and is expecting it to pay dividends per share of 16 cents in both FY 2023 and FY 2024. Based on the current Centuria Industrial share price of $3.13, this represents yields of 5.1% in both financial years. This means that $10,000 invested in its shares could yield $510 of passive income each year.

The broker also sees decent upside for its shares with its buy rating and $3.68 price target.

The post Analysts name 2 ASX 200 dividend shares to buy for passive income appeared first on The Motley Fool Australia.

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• 4 ASX 200 shares just upgraded by brokers
• Why the iron ore price is ‘not out of the danger zone’
• Why Goldman Sachs just slapped a buy rating on BHP shares
• Investing for passive income? Here’s your dividend yield if you bought BHP shares in July
• Bye bye OZ Minerals shares

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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a modest decline. At the time of writing, the benchmark index is down slightly to 7,191.2 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why these shares are rising:

CogState Limited (ASX: CGS)

The CogState share price is up 13% to $1.72. Investors have been scrambling to buy this neuroscience technology company’s shares after Eli Lilly and Company announced positive results from a Phase 3 study in Alzheimer’s disease. Its investigational treatment, donanemab, significantly slowed cognitive and functional decline in people with early symptomatic Alzheimer’s disease. This bodes well for demand for CogState’s services.

Jumbo Interactive Ltd (ASX: JIN)

The Jumbo share price is up 5.5% to $14.33. This morning, Goldman Sachs responded positively to this lottery ticket seller’s trading update by reiterating its buy rating with an improved price target of $16.10. Goldman was pleased with Jumbo’s proposed pricing changes, which the broker expects to have a positive impact on its earnings outlook.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is up 3.5% to $8.32. This is despite the struggling fund manager releasing another bleak funds under management (FUM) update this morning. Magellan advised that it experienced net outflows of $2.4 billion during April. Though, thanks to favourable market movements, its FUM only declined by $500 million month on month.

St Barbara Ltd (ASX: SBM)

The St Barbara share price is up 10% to 70.25 cents. This follows a rise in the gold price, which is lifting the whole industry today. In addition, the gold miner has put its shares in a trading halt this afternoon. This appears to be related to news involving gold developer Genesis Minerals Ltd (ASX: GMD), which has also been paused from trade.

The post Why CogState, Jumbo, Magellan, and St Barbara shares are rising today appeared first on The Motley Fool Australia.

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More reading

• Why Genesis Minerals, NAB, oOh!Media, and Super Retail shares are sinking today
• Why Flight Centre, Jumbo, Pilbara Minerals, and Ramelius shares are charging higher
• 5 things to watch on the ASX 200 on Friday
• 3 ASX 300 mining shares climbing following quarterly updates
• 12 ASX dividend shares with yields over 10%. Are they too good to be true?

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 positions in and has recommended Cogstate and Jumbo Interactive. The Motley Fool Australia has positions in and has recommended Cogstate. The Motley Fool Australia has recommended Jumbo Interactive. 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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S&P/ASX 200 Index (ASX: XJO) shares are recovering from this morning’s 55-point dip shortly after the open.

But they remain in the red at the time of writing.

ASX 200 shares are currently sitting at 7,183.2 points, down 0.2%.

As reported in The Australian today, brokers have upgraded the following four ASX 200 shares.

Let’s take a look.

BHP Group Ltd (ASX: BHP)

The BHP share price is currently $43.96, up 1.6% for the day so far.

Goldman Sachs has increased its rating on the ASX 200 mining share to buy with a price target of $49.90. This implies a potential upside of 13.5% over the next 12 months.

The broker has now incorporated the value of BHP’s acquisition of Oz Minerals into its pricing. It thinks there is good value in these blue-chip ASX 200 shares right now.

Goldman says:

… we upgrade BHP to Buy (from Neutral) based on attractive valuation after the recent ~15% drop in the stock price since January.

The slide in share price is due to the recent drop in iron ore and copper prices on the back lower than expected Chinese steel demand and developed market copper demand in 1Q.

BHP shares are down 3% in the year to date.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is currently $20.89, up 0.4% for the day so far.

Morgans has raised the ASX 200 travel share to add; however, Jefferies has gone the other way.

Jeffries cut its rating to underperform with a 12-month share price target of $18.

The ASX 200 travel share added 2% yesterday after the company updated its guidance.

Flight Centre is now targeting between $270 million and $290 million of underlying earnings before interest, tax, depreciation, and amortisation (EBITDA).

Flight Centre also reported a record-breaking month for March.

Total transaction value (TTV) on its leisure and corporate legs surpassed $1 billion for the first time ever.

Flight Centre shares are up 45% over the year to date.

Amcor CDI (ASX: AMC)

The Amcor share price is currently $15, up 0.6% for the day so far.

JPMorgan has raised its rating on the ASX 200 packaging company to overweight with a share price target of $16.30.

Competing broker Jefferies has also raised its rating to hold with a price target of $14.

Amcor released its Q3 FY23 update yesterday, revealing a 34% decline in quarterly net income to US$177 million. This led to management downgrading its full-year earnings guidance.

Amcor now expects to deliver earnings per share (EPS) of between 72 US cents to 74 US cents. The previous guidance was 77 US cents to 81 US cents.

Amcor announced an unfranked dividend of 12.25 US cents to be paid on 20 June.

As we reported, the Amcor share price dropped to a 52-week low of $14.68 yesterday.

The ASX 200 share has taken a 14% hit over the year to date.

Ramsay Health Care Ltd (ASX: RHC)

The Ramsay share price is currently $60.06, down 2.9% for the day so far.

CSLA has raised its rating on the ASX 200 healthcare share to accumulate with a $67 price target.

Meantime, Wilsons has cut its rating to market weight with a price target of $65.88.

Investors weren’t too impressed with Ramsay’s Q3 FY23 business update yesterday.

Ramsay reported a 6.6% bump in its financial year-to-date EBITDA.

This sent the Ramsay share price down 5%.

Ramsay told the market today that it’s launching two medium-term note programs.

The ASX 200’s shares are down 6.7% over the year to date.

The post 4 ASX 200 shares just upgraded by brokers appeared first on The Motley Fool Australia.

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More reading

• How did the Flight Centre share price manage to flog the ASX 200 in April?
• Why the iron ore price is ‘not out of the danger zone’
• Why are these ASX shares at 52-week lows?
• Why Goldman Sachs just slapped a buy rating on BHP shares
• Here are the top 10 ASX 200 shares today

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bronwyn Allen has positions in BHP Group and Flight Centre Travel Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, JPMorgan Chase, and Jefferies Financial Group. The Motley Fool Australia has positions in and has recommended Amcor Plc. The Motley Fool Australia has recommended Flight Centre Travel Group. 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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There is an ASX All Ords share flying under-the-radar that one portfolio manager is getting very excited about right now.

That share is the little known IPD Group Ltd (ASX: IPG), which currently has a market capitalisation of approximately $320 million.

IPD is a national distributor and service provider to the Australian electrical market. Think of it as the Dicker Data Ltd (ASX: DDR) of electrical infrastructure products.

Its core focus in the products division is the sale of electrical infrastructure products to customers including switchboard manufacturers, electrical wholesalers, electrical contractors, power utilities, OEMs and system integrators.

The company also provides a range of value-added services. This includes custom assembly, sourcing, engineering design, technical compliance, procurement, transport, storage, regulatory management, technical support, packaging, labelling, inventory management and delivery.

Who is bullish on this ASX All Ords share?

The portfolio manager that has been raving about this ASX All Ords share is Josh Clark from QVG Capital’s long-short fund.

While Clark may be going short on some stocks, he is well and truly going long on this one.

According to the AFR, the portfolio manager believes IPD is well-placed to grow strongly for a long period of time. He explains:

IPD is a distributor to the electrical industry providing products not unlike the circuit breakers in your home but on an industrial scale. Think hospitals, data centres, engineering applications, utilities etc. We like it because they have the ingredients to dramatically increase their market share over the next decade.

They compete against a large, foreign-owned incumbent and a small handful of independents, all of whom are in maintenance mode. We’ve seen this movie before with companies like Dicker Data, which have been more agile and customer-focused than their foreign competition, allowing them to grow at high rates for long periods of time.

All in all, this could make IPD an ASX All Ords share to keep a very close eye on.

The post The under-the-radar ASX All Ords share that could ‘grow at high rates for long periods of time’ appeared first on The Motley Fool Australia.

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• ‘Rerating likely’: 2 ASX shares to buy before they take off
• ’20-fold increase’: 3 ASX shares that’ll rocket sooner or later

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 positions in and has recommended Dicker Data and Ipd Group. The Motley Fool Australia has positions in and has recommended Dicker Data. The Motley Fool Australia has recommended Ipd Group. 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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The Flight Centre Travel Group Ltd (ASX: FLT) share price gained 6.4% in April.

Shares in the S&P/ASX 200 Index (ASX: XJO) travel stock closed on 31 March trading for $18.48. At the closing bell on 28 April shares were swapping hands for $19.67 apiece.

That 6.4% boost in the Flight Centre share price is more than three and a half times the 1.8% gain posted by the ASX 200 in April.

So, what went right for the ASX 200 travel share last month?

Why did the ASX 200 travel share outperform in April?

The strong outperformance of the Flight Centre share price in April will come as good news for shareholders. But certainly not so good for the sizeable number of short sellers who’ve been betting against the travel stock.

In the first week of April, Flight Centre was the most shorted stock on the ASX, with a whopping short interest of 11.7%. That short interest rose to 11.9% the next week.

Which is right about when the Flight Centre share price began to lift off. Shares gained 6.6% from the closing bell on 12 April through to the end of the month.

With no price-sensitive news released by the company in April, we can only speculate on what spurred investors to hit the buy button.

Some positives for FLT are the potential for further increases in international travellers. International travel numbers are ramping up but remain below pre-pandemic levels.

However, Flight Centre expects international capacity will reach 85% of those levels in June.

The company could also be finding support from its strong balance sheet, with a $465 million net cash position as at 31 December.

And many ASX 200 investors may be eyeing the bigger picture.

Despite some sizeable gains in 2023, Flight Centre shares remain down 48% from early January 2020. That was less than two months before COVID knocked the stuffing out of most shares, with travel stocks especially hard hit.

Flight Centre share price snapshot

The Flight Centre share price has gained an impressive 45% since the opening bell on 3 January. Though that’s not quite enough to make up for the heavy losses in the latter half of 2022.

Over the past 12 months, the ASX 200 travel share remains down 1.5%.

The post How did the Flight Centre share price manage to flog the ASX 200 in April? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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 recommended Flight Centre Travel Group. 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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The iron ore price has dropped from above US$120 a few weeks ago to less than US$110. The price an ASX iron ore share gets for its production can have a key impact on profitability, which is why there has been pressure on the BHP Group Ltd (ASX: BHP) share price, Rio Tinto Ltd (ASX: RIO) share price and the Fortescue Metals Group Ltd (ASX: FMG) share price.

Over the past month, the Fortescue share price is down 7%, the BHP share price is down 4% and the Rio Tinto share price is down 5.6%.

The investment bank Morgan Stanley thinks that the iron ore price could fall even further, according to reporting by The Australian.

Oversupply?

Morgan Stanley is suggesting that there is going to be an oversupply of iron in the coming months.

That’s because China’s steel production is “catching up with the reality of sluggish underlying demand”, according to Morgan Stanley’s commodity analysts. We have seen reports of China’s economy not rebounding strongly after COVID-19 lockdowns ended in the country.

One of the issues for iron is that China’s peak steel output ‘season’ ended about a month earlier than it did during the last two years.

Morgan Stanley reportedly noted that “relatively stable” iron ore port inventories imply that the market isn’t significantly oversupplied as of yet, but this could be about to change and hurt the iron ore price.

The suggestion by the investment bank is that more steel production cuts are needed on top of what has already occurred in China, while the iron ore supply is ramping up, which could lead to a surplus.

The Australian reported on analyst comments regarding the danger zone:

At $US106/t, the iron ore price remains above cost support and is not out of the danger zone yet. Last year, the price kept trending lower from April to October, a dynamic we could well see this year again.

What could this mean for iron ore miners?

BHP, Rio Tinto and Fortescue are three of the iron ore miners with the lowest production costs globally, so even at US$100 per tonne or US$90 per tonne, they can make decent money.

But, if the iron ore price falls it would likely mean that those three ASX mining shares would make less profit because they would get less revenue for the same amount of production.

However, if the iron ore price does fall it could make some other high-cost iron ore miners decide to lower their production, which would help the global supply and demand relationship, and hopefully boost the iron ore price.

I think the iron ore price has proven to be very cyclical over the past five years. If it does keep falling, I believe that could end up being a medium-term buying opportunity for investors because of the cyclical nature of iron ore demand. However, there’s no certainty at all that the iron ore price will recover back to its former heights this year.

The post Why the iron ore price is ‘not out of the danger zone’ appeared first on The Motley Fool Australia.

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More reading

• Here’s what brokers are saying about the Fortescue share price in May
• Top ASX passive income shares to buy in May 2023
• Why Goldman Sachs just slapped a buy rating on BHP shares
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• Bye bye OZ Minerals shares

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group. 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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