Australian iron ore companies saw their share prices dive on Wednesday in response to declining steel sector activity in China.
The S&P/ASX200 fell 44 points to 6,780.6 points on Wednesday, while Australian mining giants Fortescue Metals, BHP, and Rio Tinto saw their share prices decrease.
Chinese residents across seven provinces shivered through winter as low coal supplies forced provincial authorities to ration electricity supply.
But despite the heavy intervention by the CCP, Fortescue Metals CEO Elizabeth Gaines says the miner has seen no slowdown in demand for the mineral, AAP noted.
“We’re actually very pleased with the performance for the quarter, and certainly the record for the half,” Gaines said.
The company shipped 46.4 million tonnes of iron ore in the December quarter, the same amount in 2019.
Gaines noted that Chinese steel producers were now looking to reduce carbon emissions and some older production facilities could close, potentially affecting future demand for iron ore.