The Mineral Resources Limited (ASX: MIN) share price is charging higher today, currently up 6.4% to $47.70.
The S&P/ASX 200 Index (ASX: XJO) mining services company and resource producer is enjoying its second day of big gains, having closed up 4.5% yesterday at $44.83.
So, why are Mineral Resource shares rallying? Let’s take a closer look.
Whatâs piquing ASX 200 investor interest?
Among its other holdings, Mineral Resources has a portfolio of mining operations focused on iron ore.
Mineral Resources shares have come under pressure in recent months as Chinaâs voracious demand for the industrial metal has slipped as the country continues its economy-hobbling COVID-zero policies.
But iron ore staged another rally overnight. After gaining 1.8% the previous night, iron ore is up another 2.2% to US$115 per tonne.
Thatâs not only helping drive the Mineral Resources share price to another strong performance. Itâs also pushing most large-cap resource stocks higher, as witnessed by the outperformance of the S&P/ASX 200 Resource Index (ASX: XJR).
While the ASX 200 is up a healthy 0.9% at the time of writing, the ASX 200 Resource Index has gained more than three times that much, up 2.8%.
Industry giant BHP Group Ltd (ASX: BHP) has gained 2.1% today, while Fortescue Metals Group Limited (ASX: FMG) is up 2.7%.
Atop its iron ore exposure, Mineral Resources has a strong lithium portfolio, and the broader lithium sector is also seeing some outsized gains today.
Mineral Resources share price snapshot
Despite the two-day rally, the Mineral Resources share price remains down by 19% in 2022. That compares to a 12% year-to-date loss posted by the ASX 200.
Mineral Resources shares are also down by 16% over the past year and by more than 20% over the past month.
Longer-term, they are up 291% over five years.
The post The Mineral Resources share price is leaping higher again today. Hereâs why appeared first on The Motley Fool Australia.
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More reading
- Here are the top 10 ASX shares today
- Is now the time to be buying beaten down ASX 200 mining shares?
- These ASX 200 mining shares are bouncing back on Thursday
- Hereâs what led the Mineral Resources share price to sink 25% in June?
- Why are these ASX 200 mining shares behind the eight ball today?
Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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