Skip to content

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Metals prices: big miners find the going tough

The recent earnings and production reports from some of the world's biggest mining companies have been difficult to read, coming during a period in which metals prices have been holding up.

Video poster image

Iron ore takes its toll

Rio Tinto's (RIO) flagship iron ore division has made a very weak start to the year as component failures at newly-built mines constrict production and force the company to look for replacement infrastructure.

As a result of the war in Ukraine, parts for machinery can be hard to be found. Rio's Australian iron ore exports slumped eight per cent below the same period last year to 71.5 million tonnes and it posted a slow start to the year.

Analysts had expected Rio exports to slump, but the result was still worse than most forecasts: UBS had expected Rio to ship 72 million tonnes in the period, while RBC had expected 73.1 million tonnes, so at 71.5 million tonnes it was a big disappointment.

Nickel and copper downgrades

Meanwhile, in its 9-month trading update, BHP (BLT) cautioned on nickel and copper.

It told investors that full-year (FY) nickel production guidance has been downgraded due to labour shortages arising from the Covid pandemic and copper also suffering from labour shortages and protests by workers and environmental activists.

BHP owns the world's largest copper mine, Escondida.

We need ‘seven more Escondida mines’

Darryl Cuzzubbo, the chief executive of London-listed small cap miner SolGold (SOLG), which is bringing on what it believes will be a massive new copper deposit in Ecuador at Cascabel, says the world must face up to the issues facing a growing imbalance between supply and demand of copper.

Cuzzubbo said there are short-term and long-term issues for the supply of metals. He said that as much as possible traders should look past the short-term issues and focus on the longer term facts facing the markets.

With the electrification of the world, copper will be in heavy demand causing a severe shortage of the metal. The world, he said, needs seven more mines the size of Escondida in the next decade, just to stand still.

Production of gold also falling short

Antofagasta (ANTO) is another miner that has shot a warning sign across the markets. It has seen its shares tumble as it reported that its first quarter (Q1) production of gold, copper and molybdenum all dropped significantly.

Copper output was down by 41% compared to three months earlier on the back of an ongoing drought at Los Pelambres in Chile and lower grades at Centinela.

One bit of good news is that ANTO says copper production is expected to rise quarter-on-quarter through the year, while rising metal prices have helped revenues.

‘Challenging’ environment for major commodities

Finally, Anglo American (AAL) has downgraded its FY production guidance for its delivery of major commodities and indicated that its Q1 performance was "challenging".

AAL said copper production declined by 13% to 140,000 tonnes for the first quarter ended March, from 160,000 tonnes in the same quarter last year due to planned lower grades. But, like Antofagasta, Anglo American has maintained its 2022 copper production guidance.

Another drag was iron ore production which fell by 19% year-on-year as high rainfall and plant and machinery issues affected output.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

React to volatility on commodity markets

Trade commodity futures, as well as 27 commodity markets with no fixed expiries.1

  • Wide range of popular and niche metals, energies and softs
  • Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
  • View continuous charting, backdated for up to five years

1In the case of all DFBs, there is a fixed expiry at some point in the future.

See opportunity on a commodity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on a commodity?

Don’t miss your chance. Upgrade to a live account to take advantage.

  • Analyse and deal seamlessly on fast, intuitive charts
  • Get spreads from just 0.3 points on Spot Gold
  • See and react to breaking news in-platform

See opportunity on a commodity?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Equities
  • Indices
  • Forex
  • Commodities


Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.