Mining Stocks Fall as China Seeks Property Curbs: London MoverPeter Woodifield
U.K. miners, led by Ferrexpo Plc, New World Resources Plc and Evraz Plc, fell on concern that Chinese calls for curbs on property development will crimp demand for commodities.
Ferrexpo, an iron-ore processor in Ukraine, dropped 9.2 percent to 251.4 pence, the biggest decline in nine months and the worst performance on the FTSE 350 Index.
Miners accounted for five of the 10 biggest declines among companies in the FTSE 100 Index. Evraz, the Russian steelmaker part-owned by billionaire Roman Abramovich, was the biggest loser among the top companies trading in Britain, slumping 5 percent to the lowest price this year.
Iron-ore swaps dropped the most in five months alongside declines in steel futures and equities as investors bet that a call by Chinese Premier Wen Jiabao for local authorities to “decisively” curb property speculation may restrain demand for the commodity used in construction materials.
Copper and nickel slumped to their lowest prices this year in London on concern the Federal Reserve will slow the pace of economic stimulus in the U.S. A stronger dollar reduces the appeal of commodities as an alternative investment.
BHP Billiton Plc, the world’s largest miner, fell 4 percent in London, while New World Resources dropped 6.9 percent. Rio Tinto, the world’s No. 2 mining company, declined 3.5 percent, the biggest fall in more than six months.