Exxaro Resources Ltd. (EXX), part-owner of South Africa’s biggest iron-ore mine, fell for a fourth day to the lowest in almost six months after Citigroup Inc. said slowing growth in China will hurt demand for base metals.
The stock fell as much as 2 percent to 175.85 rand and traded at 177 rand by 12:47 p.m. in Johannesburg, the lowest since Jan. 16.
Iron-ore prices may drop to $135 a ton in the third quarter as China buys less of the material, Citigroup commodity researcher Daniel Hynes said yesterday. Prices averaged $139 in the three months through June, according to The Steel Index Ltd. Exxaro owns 20 percent of Sishen Iron Ore Co., which produces the steelmaking ingredient from its two mines in the Northern Cape Province.
“Sishen is Exxaro’s biggest asset and China’s demand for base metals is slowing,” Michael du Plooy, a stockbroker at PSG Konsult, said by phone from Pretoria. “Growth numbers are out on Friday so shareholders will be watching quite closely.”
Data on July 13 may show China’s economy grew at the slowest pace since 2009 in the second quarter, according to a Bloomberg survey.
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