The BHP Group Ltd (ASX: BHP) share price is sliding today amid wider market turmoil and falling iron ore prices.
BHP shares are down 1.21% and are currently trading at $43.31 apiece. For perspective, the S&P/ASX 200 (ASX: XJO) is 0.92% lower.
Let's take a look at what's going on with the BHP share price today.
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Iron ore prices fall
BHP is an iron ore-producing mining giant. However, BHP is not the only major iron ore producer trading lower today.
Rio Tinto Ltd (ASX: RIO) shares are down 1.27%, while Fortescue Metals Ltd (ASX: FMG) shares are sliding 3.57%.
Iron ore producers, including BHP, appear to be falling after the iron ore price fell overnight.
Iron ore futures dropped amid China lowering the price of steel products. In a research note, ANZ economist Madeline Dunk hinted iron ore prices could face more pain this year:
Iron ore futures fell sharply amid a weakening backdrop in China. Ten Chinese steel mills lowered their prices of steel products, according to Mysteel. At the same time, spot prices for rebar used in construction have slumped sharply.
The impact of China's reopening may be short lived amid ongoing underlying issues in China's property market.
This could lead to further weakness in the iron ore price this year.
The iron ore price is down 1.17% and is currently priced at US$127 a tonne, Trading Economics data shows.
The ASX is sliding today after US stocks plunged overnight amid the US Federal Reserve lifting rates by 25 basis points. The S&P 500 Index dropped 1.65%, the NASDAQ Composite fell 1.6%, and the Dow Jones Industrial Average fell 1.63%.
Commenting on the rates decision, the US Federal Reserve said "inflation remains elevated", adding:
The committee anticipates that some additional policy firming may be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time.
Share price snapshot
The BHP share price has risen 0.44% in the last year, but fallen 10% in the last month.
BHP has a market capitalisation of more than $219 billion based on the current share price.
