A broadly based leap in commodity prices has given way to greater divergence and volatility in the world’s demand for base metals. In the face of sluggish demand from the West and a shaky prognosis for the Chinese economy, BHP’s shares have struggled for direction over the past 12 months.
Its latest half-year numbers contained few surprises: revenue was up 6 per cent to $27.2 billion and ahead of consensus, largely thanks to higher realised prices for iron ore and copper, its core products. Yet that did little to calm investors’ jitters.
A $2.5 billion impairment relating to its nickel operation in Western Australia had been pre-flagged, sending pre-tax profit for the miner down to just shy of $4 billion, compared with $10.1 billion over
