Moomoo Down Under wrote a post · Mar 25 00:04

Iron ore prices take a hit

Iron ore fell below US$100 per tonne last week, which is the lowest it has been in months. The dip in price comes from China's real estate sector slowing as reported by Stockhead, with steel demand expected to continue to fall this year.

ANZ’s commodity strategists say iron ore should trade between US$90-110/tonne for the remainder of 2024 to find stability.

However, what does this drop in price mean for the mining companies on the ASX?

The big players like $BHP Group Ltd (BHP.AU)$, $Rio Tinto Ltd (RIO.AU)$ and $Fortescue Ltd (FMG.AU)$ all produce their 'main hematite DSO products' for around US$20 per tonne, so they are still quite ahead of the curve despite the price decrease.

For smaller companies with higher operation and cost structures however, the price decrease can be straining.