Why are BHP shares down?

The Australian mining giant’s latest less-than-stellar production update brought the stock's recent rally to an abrupt halt.

  • BHP (ASX: BHP) share price fell to A$38.39 on Tuesday (19 October)
  • The mining play reported lower copper and iron ore production volumes for the September-ending quarter
  • Analysts are largely optimistic about the stock, which is up 2.3% in the last one month
  • Keen to take advantage of BHP’s rising share price? Open an account with us to long the stock now.

BHP stock price: what’s the latest?

BHP shares closed 2% lower on Tuesday, after it reported a year-on-year decline in copper and iron ore production for its latest financial quarter.

Copper production dropped 9% in the September-ending quarter against the same period a year ago, while iron ore production fell 4% from September 2020.

The group said lower copper volumes were experienced at the Olympic Dam, due to the commencement of a planned smelter maintenance campaign, which led to a one-month delay on top of Covid-19 related border restrictions.

Iron ore production figures were also due to planned major maintenance, including car dumper one and the impacts of temporary rail labour shortages caused by pandemic-related border restrictions.

Nevertheless, BHP guided that copper production for the full 2022 financial year remains unchanged at between 1,590 kilo tonne (kt) and 1,760 kt. Iron ore guidance for the year also remains unchanged at between 249 mega tonne (mt) and 259 mt.

Read more: Beginner’s guide to day trading

How do analysts currently view BHP?

The stock is up 2.3% in the last one month, but down 11% year to date.

Shares have been rising of late, thanks to rallying iron ore prices.

Eight analysts recommended ‘buy’ on the Australia-listed counter as of mid-October 2021, with five rating it ‘hold’, and none giving ‘sell’ calls. Their average price target was A$47.89, Bloomberg data showed.

On Monday (11 October), Bernstein and Macquarie both gave ‘outperform’ ratings, alongside targets of A$45 and A$56 respectively.

Deutsche Bank suggested BHP was a ‘buy’ in the short term, as the counter had ‘materially lagged’ its peers since mid-August. ‘We’ve been surprised by the underperformance given the powerful rally in energy and coking coal prices in recent weeks,’ the analysts wrote.

However, they pointed out that near-term downside risks included declining commodity prices and a strong US dollar.

Feeling bullish or bearish about BHP shares?

Take your position on BHP and over 16,000 international shares via CFDs – and trade it all seamlessly from one platform.

Learn more about trading share CFDs with us, or open an account to get started today.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.