On November 10, weak Chinese inflation data led to a fall in base metals and related mining companies. The fall of copper and other base metals worsened the sentiment toward base metal mining companies and resulted in their fall on November 10.
Brazil mine accident is still weighing on BHP
On November 10, BHP Billiton (BHP), an Anglo-American mining company, fell to a new seven-year low on the NYSE (New York Stock Exchange). It closed at $29.88 because of the pressure from weak base metals and the impact of the mine burst in Brazil. On November 5, an iron ore dam burst in a Samarco mine that is owned jointly by BHP Billiton and Vale (VALE). On November 10, Brazil’s government announced that it may impose a fine on mining giants BHP and Vale for the mine burst.
Glencore is trading at a five-week low
Glencore (GLEN), a multi-commodity trading and mining giant, has been falling for the past four trading sessions. Weak base metal prices have been keeping the pressure on Glencore since the beginning of 2015. On November 10, it fell by 4.2% and reached its lowest price level since October 5. Alcoa (AA), one of the largest producers of aluminum in the world, fell by 3% on November 10 and closed the day at $8.35. The equity prices of Alcoa have been falling continuously for the past five trading days and reached their lowest price level since August 27 due to the fall of base metals.