ASX copper shares explode by up to 34% following BHP takeover bid

ASX copper shares are soaring today amid a strong outlook for the copper market and rising imports from China.

Copper explorers in the green include Copper Mountain Mining Corporation (ASX: C6C), Sandfire Resources Ltd (ASX: SFR), Oz Minerals Limited (ASX: OZL) and 29Metals Ltd (ASX: 29M).

So let’s take a look at what could be impacting ASX copper shares today?

What’s happening?

Copper Mountain shares are exploding 34% at the time of writing today, while Sandfire shares are rising 6.36%. Meanwhile, Oz Minerals shares are skyrocketing 34% and 29Metals shares are surging 15.51%.

This morning, Oz Minerals highlighted the strength of copper and nickel in an update to the market. The miner knocked back a takeover bid from the BHP Group Ltd (ASX: BHP).

Oz Minerals said there was a “strong long-term outlook” for the copper and nickel market. The company highlighted the growing geological scarcity, global electrification and decarbonisation. Managing director Andrew Cole said:

We have a unique set of copper and nickel assets, all with strong long-term growth potential in quality locations. We are mining minerals that are in strong demand particularly for the global electrification and decarbonisation thematic and we have a long-life Resource and Reserve base.

Meanwhile, copper imports into China jumped 9.3% in July compared to the same time last year, according to a Reuters report published on mining.com. However, the imports were 13.8% down on the previous month.

CRU Group copper analyst He Tianyu said:

There was large-volume buying from Chinese copper users and traders when the market hit lows.

In a research note today, ANZ analysts said China’s commodity imports for July showed “signs of improvement in demand”. Analysts said:

Copper imports benefitted from lower prices, favourable import parity and depleted inventories.

The post ASX copper shares explode by up to 34% following BHP takeover bid appeared first on The Motley Fool Australia.

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More reading

• Why is the Copper Mountain share price surging 30% on Monday?
• The OZ Minerals share price is rocketing 35% after BHP bid
• Why is the Sandfire share price leaping 7% on Monday?
• BHP share price lifts as $8.3b takeover bid rejected
• OZ Minerals share price on watch after miner rejects BHP’s $25 per share takeover offer

Motley Fool contributor Monica O’Shea 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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