Energy and miners were hit hard on the ASX yesterday as prices for oil and iron ore prices continued to trade weakly.
The wider market fell 45 points or 0.8% to take the loss for the year so far to 6.5%.
Oil edged up 1.4% in Asian trading but that was on speculative buying.
Spot iron ore prices in China were weaker yesterday and Singapore iron ore futures fell 5.4% to $US63.50 a tonne yesterday, catching up with a late 2.8% slide on Friday to $US70.13 a tonne.
That was down from $US75.31 the Friday before and follows the rapid erosion of profit margins for Chinese steel mills as the impact of winter production and pollution restrictions destroy margins.
The materials and energy indices were the worst performers, ending the day 2.5% lower. BHP and Rio Tinto dropped 3.5% to $30.43 and $74.05 respectively. BHP, in fact, hit its lowest level since April.
Fortescue Metals shares shed 4% to $3.85, South 32 saw a near 2% loss to $3.10 and Oz Minerals shares fell 2.4% to $8.49
BlueScope steel dropped 5.8% to $11.87. Whitehaven Coal shed almost 5% to $4.12.
Smaller miners weren’t spared also under pressure. Independence Group fell 7.7% to $3.59, Iluka Resources lost 5.3% to $7.81, Mineral Resources closed 6.7% lower at $14.45, Sandfire Resources slumped 5.7% to $6.29, Pilbara Minerals lost 2.4% to 82 cents and Orocobre ended trade at $4.09, down 3.8%
Woodside Petroleum lost 2.2% to $31.37 (also lowest since April). Santos shares sold off, losing 4.7% to end at $5.49 and beach lost 3.9% to end at $1.46.
But big oil users jumped on the low oil prices. Qantas shares rising 2.8% at $5.89. Caltex Australia rose 1.2% to 427.21 and shares in recent float Viva Energy were up 4.8% at $1.99.
