Mining giants in trouble after China's Iron Question decreased

The largest mining companies around the world have benefited from the major increase in China’s demand for iron ore in the past, but it has begun to influence the effects of the economic challenges facing China, as the country is the largest customer. BHP Group, Rio Tinto and the Australian Fortescue and the Brazilian “Valley” dropped their profits this week, to the prices of the basic mineral for steel manufacturing in light of the continued real estate crisis in China, and its impact on the demand for construction and construction in the second largest economy, and the most invested companies in the second largest economy. Iron ore was one of the primary basic commodities in 2024, as the price of iron fell by more than a quarter, and the average price of standard future contracts fell by about 7% compared to the previous year. While prices on the Singapore Stock Exchange exceeded the $ 140 per tonne level, before falling to about $ 100 per tonne, and analysts expect the decline to continue to less than $ 90 per tonne by the end of 2025. China and the iron request indicate that the demand for steel in demand for iron ore indicates. Although the country is constantly importing more than a billion tonnes annually, the expected turning point has not yet taken place. Steel factories are exposed to increasing financial pressure, and the government is unlikely to provide a motivation that will boost the construction sector. The increase in protectionism around the world is also expected to negatively affect the steel exports from China. The low demand is not the only source of pressure on iron ore prices, as it is likely that the offer is also expected, with the expectation of the start of the giant –‘Cemeno ‘project in Guinea later this year, in addition to increasing production in Australia and Brazil. Jiang Mentegian, a head of the iron ore analyst at Horizon Insights who lives in Shanghai, explained that the smaller and higher cost businesses will be most affected, and that “the process of pressure on profits will gradually lead to a change in the primary production sectors, especially with the expectation of the high production capacity of IRMERRIEF MINE in 2025, is damaged. Tinto) ready to continue to achieve great cash flow of her activity in iron ore, while maintaining and improving the ability to take advantage of the high prices of copper and aluminum at the beginning of the next question cycle. Brazilian ‘valley’ and the Australian ‘Fortakio’, its position was worse; Valley relies on iron ore to achieve 80% of its revenue, and was a witness to a scale of its latest quarterly profits by 41%, while “Fortakio”, specializing in iron ore alone, fell by 53% during the first half of the year.