Why now’s not the time to jump back into BHP
Analysts are warning investors against jumping back into the beaten-up mining giants, given Beijing is offering little hope of stabilising China’s property crisis, presenting a continuing headwind for commodity prices.
The red flag from Morningstar comes as iron ore’s spot prices hover near a two-year low of about $US95 a tonne. Prices have plunged more than 30 per cent this year as weakness in China’s construction activity hurts steel demand, leaving mills unprofitable and unwilling to buy the commodity.
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