How Trump’s Feud with China Could Hurt BHP and Rio

How Trump’s Feud with China Could Hurt BHP and Rio

If you’ve been watching the price of iron ore, you’ll know mineral has been up and down. Spot prices ran up above US$94 a tonne on 21 February, only to quickly race back down below US$64.

Iron ore is now sitting around US$65 a tonne. But confidence in iron ore demand and steel production can quickly change, as we’ve seen.

The last thing iron ore miners like BHP Billiton Ltd [ASX:BHP] and Rio Tinto Ltd [ASX:RIO] need is uncertainty over demand.

But thanks to Donald Trump, sentiment for the commodity could soon hit rock bottom. As reported by the Sydney Morning Herald (emphasis mine):

President Trump ordered the Commerce Secretary to prioritise an investigation into whether steel imports into the US “threaten to impair national security”, by drawing on an obscure provision in a 1962 trade law.

The move opens up a path for the Trump administration to potentially impose harsh tariffs on steel from a broad range of countries that Australia exports the steel-making ingredient iron ore to.

This would likely affect the demand for iron ore, having a flow-on effect on both BHP and Rio.

Of course, this is just speculation for the moment. Trump’s investigation could end up going nowhere. For now, BHP and Rio seem to be safe, as investors bid up both stocks this morning.

Thanks to overnight trade, both BHP and Rio are up 1.9% and 2.5% respectively this morning. Rio got an added bump due to Citibank raising their recommendation on the miner to a ‘buy’.

What now for BHP and RIO?

Rio and BHP probably aren’t the stocks you’d hold for a short-term gain. While both impressively appreciated in 2016, they likely won’t run up more than 40% in 2017.

But there are resource stocks that could.

Resource expert Jason Stevenson has an impressive track record when it comes to resource stocks. A number of Jason’s active investments in his advisory service, Resource Speculator, are up 52.4%, 57.6% and 100%!

If these are the kinds of returns you’re looking for, you’d do well to cast your eye over Jason’s free report, ‘The Top 10 Australian Mining Stocks for 2017’.

Jason will introduce you to 10 cheap, top-quality Aussie mining stocks that look set to soar this year.

To get your free copy of Jason’s report, click here.


Härje Ronngard,

Junior Analyst, Markets and Money

Free report reveals:

10 ‘Big Money’ Mining Stocks for 2017
Markets & Money Free ReportAfter eight years in the doldrums, Aussie mining stocks are making a stunning resurgence. In the last year alone, the S&P 300 Metals and Mining Index is up 50%.

As resources analyst Jason Stevenson explains in his free report, this could be your final shot to pick up cheap, quality mining stocks before the commodities comeback kicks into overdrive in the months ahead.

Download this free report right now and discover:

  • Ground Zero for Mining Boom Part 2: This ‘wild card’ nation could spark the next iron ore boom as early as 2017. Government officials are signing deals to build 100 new mega cities over the next five years. Jason calls this nation the ‘new China’. And you’ll learn the stocks most likely to profit from it.
  • Why the Aussie Resources Boom Will Last another 18 Years: If you think the days of striking it rich with Aussie resource stocks are gone…you’re dead wrong. Jason reveals why the new resources boom — set to kick off in 2016 — will last until 2033.
  • The Top 10 Aussie Mining Stocks to Buy Now: These 10 quality Aussie miners are trading at fire-sales prices. This could be your last chance to buy them so cheap. Load up now and you could make a small fortune over the next two years…

To download your copy of The Top 10 Australian Mining Stocks for 2017, take out your free subscription to Markets & Money. Simply enter your email address in the box below and click ‘Send My Free Report’.

We will collect and handle your personal information in accordance with our Privacy Policy.

You can cancel your subscription at any time.

Härje Ronngard

Härje Ronngard

Harje Ronngard is a Junior Analyst at Markets and Money.

With an academic background in finance and investments, Harje knows how simple, yet difficult investing can be. He has worked with a range of assets classes, from futures to equities. But he’s found his niche in equity valuation.  

Leave a Reply

Be the First to Comment!

Notify of
Letters will be edited for clarity, punctuation, spelling and length. Abusive or off-topic comments will not be posted. We will not post all comments.
If you would prefer to email the editor, you can do so by sending an email to