Fortescue, BHP and Rio Tinto Drop Over 3% as Simandou Exports Hit 2.2 Million Tons
Updated
Updated · Rask Media · Jun 4
Fortescue, BHP and Rio Tinto Drop Over 3% as Simandou Exports Hit 2.2 Million Tons
3 articles · Updated · Rask Media · Jun 4
Summary
Fortescue, BHP and Rio Tinto each fell more than 3% as investors reacted to a sharp rise in iron ore shipments from Guinea's Simandou project.
Morebaya port exports reached 2.2 million tons in May, up from April's 1.3 million tons and 0.6 million tons or less in each of the first three months.
The faster ramp-up points to more global iron ore supply, pressuring prices and threatening margins, profits and dividends for Australia's biggest iron ore miners.
BHP and Rio Tinto have been diversifying into copper, potash and lithium, a buffer if Simandou's growth pushes iron ore prices lower over the longer term.