Why are ASX 200 mining shares bolting out the gates on Monday?

S&P/ASX 200 Index (ASX: XJO) mining shares are handily beating the benchmark on Monday.

In early afternoon trade, the ASX 200 is up 0.6%.

As for the big-name mining stocks:

• Rio Tinto Limited (ASX: RIO) shares are up 3.1%
• BHP Group Ltd (ASX: BHP) shares are up 4.3%
• Fortescue Metals Group Limited (ASX: FMG) shares are up 3.9%

Here’s what investors are considering on Monday.

What’s boosting ASX 200 mining shares today?

Rio Tinto, BHP and Fortescue all look to be enjoying some healthy tailwinds from a big leg up in the iron ore price. The ASX 200 mining shares all derive at least half of their annual revenue from iron ore.

The industrial metal is up 5% today to US$88 per tonne.

The lift came amid renewed speculations that China may move to ease its COVID-zero policies. Demand for the steel-making metal from China, the world’s number two economy and most populous nation, has been hit as rolling lockdowns in the country continue to hamper its industry and economic growth.

The ASX 200 mining shares leapt higher on Friday on their international listings as speculations on China’s virus control policies swirled. The BHP share price gained 9.8% on the NYSE on Friday while Rio Tinto shares closed up 10%.

Commenting on those moves, Ben Cleary, global natural resources portfolio manager at Tribeca Investment Partners said (courtesy of The Australian Financial Review):

That move on Friday was a big move, not a move we’ve seen for more than a decade. [On China] there seems to be a different headline every day, but the reality is it’ll reopen at some stage, and they’re seemingly in the early stages of making [Western vaccines] available for certain groups, including expats.

Cleary looks to have nailed that analysis on several fronts, including the different headlines every day out of China.

Over the weekend, Chinese officials reiterated their commitment to the COVID-zero policies. However, that doesn’t look to be dampening ASX 200 investor enthusiasm for the big mining shares today.

How have BHP, Fortescue and Rio Tinto shares been tracking?

All three of the ASX 200 mining shares have outpaced the benchmark over the past 12 months.

While the ASX 200 has lost 7% over the full year, BHP shares have gained 10%, Rio shares have gained 7% and the Fortescue share price is up 14%.

The post Why are ASX 200 mining shares bolting out the gates on Monday? appeared first on The Motley Fool Australia.

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More reading

• Why is the Rio Tinto share price having such a stellar start to the week?
• Looking to buy Fortescue shares? Here are the questions I asked before jumping in
• Why is the BHP share price charging 4% higher?
• Hotels, hurt feelings, and HR hassles, but Fortescue’s biggest shareholder still got richer this week
• Why did the Rio Tinto share price underperform by over 10% in October?

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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