World’s Biggest Miners Pinched by Iron Ore’s China Problem
- Companies most exposed to the steel staple fared the worst
- Supply is likely to ramp up this year and further hurt prices
Iron ore stockpiles at Rio Tinto Group's port facility in Karratha, Western Australia.
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The world’s biggest miners, having cashed in on China’s once-rampant demand for iron ore, are starting to reel from the impact of their main customer’s economic struggles.
BHP Group Ltd., Rio Tinto Group and Fortescue Ltd. in Australia, and Brazil’s Vale SA, all posted weaker profits this week, after prices of the steel-making staple beat a retreat in the face of China’s prolonged property crisis and its impact on construction demand in the world’s second-biggest economy. The firms most exposed to iron ore fared the worst.