Sydney, Feb 6, 2026, 16:57 AEDT — Market closed.
- BHP dropped 3.1% as Australian stocks slid ahead of the weekend
- Iron ore prices dropped as stockpiles remain elevated, adding strain on miners
- Traders keep an eye on cyclone updates in WA alongside BHP’s half-year earnings due next week
BHP Group Ltd BHP.AX shares dropped 3.1% on Friday, ending at A$48.79. The stock underperformed the broader market, which saw the Australia S&P/ASX 200 slide roughly 2%. Intraday, BHP shares touched a low of A$48.50.
This shift is significant since BHP holds major weight in the benchmark and serves as a key indicator for Australia’s commodity exports. By the close, investors wrestled with two conflicting factors: weaker iron ore demand cues and new weather threats disrupting the Pilbara export route.
Commodity markets showed signs of strain Thursday. Iron ore dropped 2%, pressured by bloated inventories that could curb near-term demand, as a broader selloff dragged down prices. “Sentiment has turned soggy across most asset classes … creating a self-reinforcing feedback loop,” noted OCBC strategist Christopher Wong. Tony Sycamore from IG described the recent volatility as “aftershocks.” Reuters
Peer moves were mixed, adding to the noise. Rio Tinto grabbed attention by pulling the plug on takeover talks with Glencore. Its Australian shares briefly hit a new peak before slipping back, even as the broader market fell. “This is positive that Rio appears to be disciplined in not overpaying,” said Andy Forster, Argo Investments’ senior investment officer. Reuters
Weather risk has returned to the spotlight. Pilbara Ports announced that Port Hedland — the globe’s largest iron ore export hub — along with Western Australia’s Ashburton, Cape Preston West, Dampier, and Varanus Island ports, are being cleared in response to cyclone concerns. The Australian weather bureau warned that a tropical low could escalate into a cyclone by Saturday morning.
For miners, such disruptions can slash shipments and scramble price signals. A narrow export window often pushes seaborne prices higher due to supply worries, even as volumes take a hit. Investors typically discount uncertainty before earnings reports.
The risk scenario swings both ways. Should the system veer away from critical infrastructure and ports reopen swiftly, the supply-risk premium baked into the market could evaporate quickly. But if the weather takes a toll or commodity prices keep falling, miners might remain under pressure heading into next week.
Trading kicks off Monday with eyes on iron ore prices and any fresh updates from Western Australian ports. Investors will also be gearing up for BHP’s half-year earnings report, set for Feb. 17 around 8:00 a.m. Melbourne time, per the company’s financial calendar.
Related articles: Stock Market
