Why has the BHP share price bolted out the gates on Monday?

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The BHP Group Ltd (ASX: BHP) share price has charged higher today.

BHP shares are up 2.80% near the close, trading at $47.00 after hitting a high of $47.25 earlier this afternoon. The S&P/ASX 200 Index (ASX: XJO) is also in the green, up 0.53% at the time of writing.

Shares in BHP have lifted today, but the company is not the only ASX mining share in the green. The RIO Tinto Ltd (ASX: RIO) share price is up 3.60% today, while Fortescue Metals Group Ltd (ASX: FMG) shares are soaring 7.77%.

Let’s take a look at what is going on with the BHP share price.

What’s going on?

BHP is a major iron ore producer. The company also explores copper, nickel, potash and metallurgical coal.

The company’s share price momentum today follows a 4.2% lift in iron ore futures in the United States on Friday to US$107.44 a tonne. Overall, iron ore surged 15.9% last week.

Iron ore futures on the Singapore Exchange are currently up 1.96% to US$108 per tonne.

Commenting on the iron ore price, ANZ head of economics David Plank said in a research note that iron ore was “buoyed by China’s moves to support the property sector”. He added:

These measures should have a better chance of developing into stronger demand for steel and iron ore.

Meanwhile, BHP provided a non-price-sensitive update on an English High Court case today. BHP has filed a defence against a group action claim seeking damages for alleged losses related to the Fundao Dam collapse in 2015. BHP denies the claims in their entirety.

Share price snapshot

The BHP share price has soared 31% in the last 12 months, while it has gained nearly 28% year to date.

For perspective, the ASX 200 has returned 1.37% in the last year.

BHP has a market capitalisation of around $238 billion based on the current share price.

The post Why has the BHP share price bolted out the gates on Monday? appeared first on The Motley Fool Australia.

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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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