Iron Ore Stocks

After driving the ASX 200’s recovery in the second half of 2020 and beginning of 2021, the iron ore sector has faced a rude awakening as iron ore prices have plummeted from the highs reached in May of $US237.57 per tonne to a price of $US107 per tonne. Despite the price dropping 55%, the respective share price falls of major iron ore producers BHP Billiton (BHP), Fortescue Metals (FMG) and Rio Tinto (RIO) are 27%, 39% and 25% from their highs (having already paid final dividends), so, while it feels like these names have seen significant sell-offs, the falls have lagged that of the underlying iron ore price.