Glencore, BHP Billiton, Anglo American share price: Miners suffer as iron ore falls to fresh 10-year low
Iron ore prices fell to a fresh 10-year low today, amid concerns falling demand from its biggest consumer would add to a global glut in the steelmaking raw material.
It came after industry consultancy Custeel said more steel mills in China's Shanxi province have halted production due to shrinking demand and shortage of cash.
Spot iron ore prices fell to a fresh 10-year low below $40 a tonne, and are set for their steepest weekly decline in five months. This means its fallen 7.4 percent for the week, the steepest slide since declining almost eight per cent in early July.
Falling iron oil prices reverberated through the FTSE's mining sector, which was down 138.04 points, or 1.79 per cent, at 7,581.33 points this afternoon.
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Shares in Anglo American was down 3.21 per cent to 374.45p per share, while Antofagasta and Rio Tinto both shed around two percent to 491.20p per share and 2,071.50p per share respectively.
BHP Billiton was 0.83 per cent lower at 780.90p per share, Fresnillo was down 1.34 per cent to 700p per share and Glencore shed 3.64 per cent to 86.94p per share.
Iron ore, a steelmaking raw material, has fallen around 30 per cent this year, putting it on course for a third straight annual decline.
It's been hammered as the world's biggest miners, such as Rio Tinto and BHP Billiton, boosted low-cost production to slash costs and protect market share, while steel consumption in China shrank.