London s Major Mining Companies Led The FTSE 100 Lower After A Warning From BHP Struck A Nerve
London's major mining companies led the FTSE 100 lower after a warning from BHP struck a nerve.
The Anglo-Australian miner said global steel production - excluding China - could drop sharply this year due to the pandemic.
Although it didn't offer a specific figure, BHP said it could fall by double digits in percentage terms.
Steel is often seen as an economic bellwether.
Higher production and demand tend to go hand-in-hand with economic growth and the expansion of industries such as construction.
Anglo-Australian miner BHP said global steel production - excluding China - could drop sharply this year due to the pandemic
BHP's words, then, spooked its peers.
Russian steelmaker Evraz tumbled 11.2 per cent, or 29.6p, to 233.8p, kora live while fellow commodities behemoths Rio Tinto (down 5.2 per cent, or 199p, to 3633.5p) and Glencore (down 6.6 per cent, or 9.48p, to 133.58p) also notched up big losses.
RELATED ARTICLES Share this article Share BHP softened the blow somewhat by confirming it will still produce the same amount of iron ore - a key ingredient in steelmaking - as planned this year, between 273m and 286m tonnes.
Its shares fell 6.4 per cent, or 84.4p, at 1226p.
But beyond steel, BHP was also on the back foot after warning its oil output would hit the bottom end of previous guidance amid a huge slump in demand.
<div class="art-ins mol-factbox floatRHS money" data-version="2" id="mol-7d05eec0-8412-11ea-8b76-b1fc31e2b2a9" website REPORT: Mining shares slump on steel production fears