BHP Group Limited (BHP.AX)

BHP's price has dropped roughly a tenth over the past month.

What is going on right now?

The share price slipped about 6% in the last week alone, and trading activity has been quieter than usual. Reports that China's economy grew 4.5% in the latest quarter eased some expectations for big new government spending there, which matters because China is where a lot of BHP's metals end up.

How is the business itself doing?

BHP digs up iron ore, copper, and coal. Its revenue grew about 18%, but its actual profit shrank around 9%. It keeps roughly 43 cents of every dollar it earns after running costs, which is a wide margin.

What stands out?

The company generated about $9.6 billion in cash, even as profits dipped. Reports of oil near $109 linked to tensions around the Strait of Hormuz may raise the energy costs of running mines, though the connection is indirect.

What comes next?

China accounts for a large share of what BHP sells, so the next round of Chinese economic data, especially anything about construction and manufacturing activity, will show whether demand for iron ore and copper is holding up.