ASX 200 miners smashed as commodities rout hits Materials
Miners extended a sharp two-day slide after an overnight slump in commodities as Iran’s Strait of Hormuz blockade stoked inflation fears.
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KEY POINTS
- Miners are being hit hard again, with the S&P/ASX 200 Materials Index sliding as much as 4.2% following a broad commodities selloff on Tuesday.
- An overnight rout across most commodities triggered by the Iran war escalation has sharpened inflation and economic growth concerns.
- This article breaks down which commodities led the slump and how the macro backdrop is feeding into price action.
The S&P/ASX 200 Materials Index dipped as much 4.2% in early trade on Wednesday, following a 3.0% fall in the previous session. The Index hasn't suffered a decline of such magnitude since Trump’s Liberation Day tariff announcement on 7 April 2025.
The sell-off followed an overnight rout across commodities. The Iran war escalation in the Middle East and the Strait of Hormuz blockade sharpened inflation fears and pushed investors into de-risking.
The disruption also raised immediate energy security concerns for Asia, given the region’s reliance on Middle East oil and LNG flows. Meanwhile, economists in a Bloomberg survey flagged faster inflation as the primary macro transmission channel.
Overnight commodity prices
Here's how key commodities performed on Tuesday. Most commodities finished lower, but off worst levels (e.g. finished 4.4% lower but off session lows of 6.1%). Prices are starting to bounce in the current session.
Commodity | % Chg | Price (US$) |
|---|---|---|
Platinum | -9.5% | $2,088 |
Silver | -8.1% | $81.99 |
Palladium | -7.2% | $1,646 |
Gold | -4.4% | $5,087 |
Copper | -2.1% | $5.83 |
Zinc | -1.0% | $3,251 |
Nickel | -0.3% | $17,054 |
Aluminium | +2.8% | $3,261 |
Brent | +4.9% | $81.93 |
Gold stocks dip
The S&P/ASX All Ords Gold Index dipped as much as 7.0% in early trade, now down 4.0%.
Ticker | Company | % Chg | Price |
|---|---|---|---|
WGX | Westgold Resources | -8.21% | $7.33 |
GMD | Genesis Minerals | -7.69% | $7.51 |
NEM | Newmont Corporation | -6.89% | $170.81 |
RSG | Resolute Mining | -6.65% | $1.52 |
CMM | Capricorn Metals | -6.30% | $14.28 |
EVN | Evolution Mining | -5.57% | $15.93 |
NST | Northern Star Resources | -5.39% | $29.06 |
BGL | Bellevue Gold | -5.12% | $1.72 |
ALK | Alkane Resources | -4.64% | $1.65 |
PRU | Perseus Mining | -4.53% | $5.80 |
Data as at 12:00 pm AEST
Silver stocks slump
Silver stocks haven't been quite the same after silver prices suffered a historic 26% one-day selloff on 30 January. Most stocks are down 20-30% from recent highs, with most trading 5-8% lower today.
Ticker | Company | % Chg | Price |
|---|---|---|---|
SVL | Silver Mines | -8.16% | $0.23 |
ASL | Andean Silver | -7.38% | $2.26 |
USL | Unico Silver | -7.33% | $0.89 |
POL | Polymetals Resources | -6.60% | $0.99 |
MMA | Maronan Metals | -5.36% | $0.53 |
SS1 | Sun Silver | -5.06% | $1.88 |
ARD | Argent Minerals | -2.78% | $0.04 |
IVR | Investigator Silver | -1.08% | $0.09 |
Data as at 12:00 pm AEST
Copper stocks slip
Copper suffered a 2.2% dip overnight and back below US$6/lb, though prices have been fairly rangebound since December. Sandfire is trading slightly lower, but down around 7% in the last two sessions, while more leveraged plays like Aeris and Cyprium are down 3-6%.
Ticker | Company | % Chg | Price |
|---|---|---|---|
CYM | Cyprium Metals | -6.80% | $0.48 |
HGO | Hillgrove Resources | -6.25% | $0.05 |
FFM | Firefly Metals | -4.72% | $2.02 |
AIS | Aeris Resources | -3.43% | $0.51 |
AR1 | Austral Resources Australia | -2.11% | $0.09 |
SFR | Sandfire Resources | -1.67% | $19.14 |
Data as at 12:00 pm AEST
Uranium pull back sharply
Uranium stocks are still hovering intraday lows, with the commodity down 0.2% at US$86.2/lb overnight. The price has been softening over the past month but still up 32% from a year ago.
Ticker | Company | % Chg | Price |
|---|---|---|---|
PDN | Paladin Energy | -8.60% | $12.44 |
PEN | Peninsula Energy | -8.11% | $0.68 |
LOT | Lotus Resources | -8.00% | $2.07 |
BMN | Bannerman Energy | -7.93% | $4.41 |
DEV | Devex Resources | -7.84% | $0.24 |
BOE | Boss Energy | -7.11% | $1.77 |
DYL | Deep Yellow | -7.04% | $2.51 |
EL8 | Elevate Uranium | -6.76% | $0.35 |
AGE | Alligator Energy | -6.25% | $0.05 |
AEE | Aura Energy | -5.52% | $0.14 |
Data as at 12:00 pm AEST
What's next
Miners and commodity prices have rallied strongly both year-to-date and over the past twelve months. While the S&P/ASX 200 Materials Index is down around 6% in the last two sessions, that only dents its year-to-date return to 14% and brings the index down to a six-day low.
The challenge here is that the commodities trade remains relatively crowded and prices are still overbought/overextended. Bank of America’s February Global Fund Manager Survey noted long gold as the most crowded trade, while the share running “long Magnificent 7” fell to 20% from 54% two months earlier.
Gold's historic run has pushed the price around 25% above its 200-day moving average. It really hasn't taken any meaningful breather since 2023. Despite being susceptible to a sharp pullback, there's no denying the underlying drivers for higher prices.
The World Gold Council forecasts global gold demand to hit a record ~4,900 tonnes in 2026, the second consecutive annual increase. While central bank purchases are forecast to hit a historically high ~1,000 tonnes this year. The same can be said about copper (and its growing supply deficit), silver (safe haven and solar demand) and other commodities.
The bottom line: The market is grappling a major geopolitical event that could have significant implications for inflation, interest rates and supply chains etc. The path of least resistance for resources is arguably higher, but this backdrop is adding a great deal of volatility to the mix. While the path of least resistance for resources is arguably higher, there's no doubt that this adds a great deal of volatility to the mix.
