BHP, Rio Tinto slide as latest China stimulus measures disappoint

Iron ore mining giants BHP (NYSE:BHP) -2.8% and Rio Tinto (NYSE:RIO) -1.9% pre-market Monday after another round of stimulus measures from top customer China disappointed investors who had hoped for action that would spark demand for commodities.

Iron ore prices tumbled as much as 2.5% in Singapore to two-week lows after declining on Friday, when China’s government unveiled a debt-swap plan that lacked measures to directly boost domestic demand, including in the country’s depressed property sector.

Singapore iron ore futures (SCO:COM) recently traded -1.7% at $100.85/ton after losing 2.8% on Friday; in China, yuan-priced contracts in Dalian fell, and steel futures in Shanghai also declined.

Analysts at Citi recently forecast a gloomy outlook for iron ore prices to average $85/ton in 2026, saying additional supply from Simandou in Guinea, incremental supply from Australia and Brazil, and overall weak demand from Chinese customers will pressure prices.

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