Iron ore depreciates continuously, hurting major mining companies in Australia

Commonwealth Bank of Australia commodity strategist Vivek Dhar said the iron ore price reversal is evidence that the market is "finally paying attention to the current steel market signals in China," as reported by the Daily. Reported by The Australian.

Markets are particularly worried that demand growth expectations related to China's pledge to boost infrastructure investment may not materialize.

At the same time, prices for other metals, such as aluminum, fell due to "concerns that aggressive interest rate hikes by… central banks could push the global economy into recession," according to the report. by Reuters published on the Nasdaq US site.

What does this mean for iron ore miners in Australia?

The report claims the iron ore market could hurt "three major Australian miners".

Specifically, the big three refer to Rio Tinto Ltd (ASX: RIO), BHP Ltd (ASX: BHP) and Fortescue Metals Group Ltd (ASX: FMG).

The article said: “The three giant Australian miners have, as of this month, lost around A$30 billion in total market value and are facing a third consecutive week of losses after hitting the all-time high. lowest in weeks on Monday.”

Fortescue is trading near a six-month low while the share prices of both Rio and BHP have been similarly volatile over the same time period.

If the spiral continues, the stock prices of the three main iron ore miners could suffer.

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