The metals massacre is continuing on the ASX

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Mining stocks were under intense pressure in early trade on the Australian market again today.

Oil prices dropped again and iron ore prices are getting smoked.

In early trade, Rio Tinto dropped 3.8% to $40.76 and BHP 1.4% to $16.80. Both were sold down on the London Stock Exchange overnight.

Later in local trade, BHP recovered to $17.22, up 1%. BHP yesterday lost 5.2% to close at $17.05, a long way from $24.90 four weeks ago. Rio Tinto was down 1% to $41.94.

And the resources pain continues. Big miner Anglo American announced it was shedding staff, stopping dividends and selling assets in what it calls a “radical” restructuring to try to weather the commodity crash.

However, energy stocks were firmer on the Australian market after losing more than 6% in value yesterday. Woodside Petroleum was up 1.49% to $27.29 and Santos 3.78% to $3.43.

On the local market yesterday, billions of dollars were wiped from the mining sector. The materials sector hit its lowest point since May 2005.

BHP, the world’s biggest miner and a favourite of superannuation funds and retail investors because of its steady dividends streams, fell to a 10-year low.

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