The mining sector has been generating revenues so far this year, although at a lower level. The Stoxx Europe 600 didn't vary substantially as the earnings season was getting in full speed. However, according a shift in the news flow, the profit generating days might be numbered.

Rio Tinto is the first company to cut its production targets, as widely anticipated. The BHP Billiton Group also issued a similar warning. This was not a big problem as soaring iron ore prices still guaranteed good margins improvement, which will largely compensate the lower production volume and cost inflation. Vale’s unexpectedly rapid restart of production might change the result of the game.

Rio and BHP were the most impacted companies among the members of the Stoxx 600 basic resources index (SXPP). As a result of iron ore price hike, their revenues only reached 43% and 35% of their 2018 revenues respectively, while Anglo American had a 13% exposure.

In addition, as Rio, BHP and Anglo had a 49% weight in the SXPP index, the index will be impacted, in anticipation of massive shortage of iron ore which some consider might not be materialized finally.