Why is the BHP share price in the green today?

The BHP Group Ltd (ASX: BHP) share price is leaping higher today.

BHP shares are currently up 1.01% to $49.735. For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) share price is climbing 0.45% today.

Let’s take a look at what could be weighing on the BHP share price today.

What’s going on?

BHP is not the only iron ore producer in the green today. The Rio Tinto Ltd (ASX: RIO) share price is up 1.12%, while the Fortescue Metals Group Limited (ASX: FMG) share price is climbing 1.09%.

Iron ore China futures are currently up 0.53% on the Singapore Exchange at last look.

China expert and director of iron ore research Philip Kirchlechner is optimistic strong iron ore demand can continue, The Western Australian reported.

Copper prices also remained elevated overnight at US $9,300 per tonne. Commenting on the movement of commodities, ANZ rates strategist Jack Chambers said in a research note this morning:

Copper held steady above USD9300/t. Supply issues and strong demand prospects from China are limiting any profit taking even after prices rising 12% this month.

Iron ore prices traded sideways in absence of guidance from the Chinese market.

BHP is proposing to acquire 100% of copper explorer OZ Minerals Limited (ASX: OZL). A scheme meeting to approve the potential takeover is due in late March or early April. BHP also entered a deal with Canadian company Mundoro Capital Inc. (TSXV: MUN) to explore copper in Serbia this week.

Meanwhile, Fortescue’s record half iron ore production may also be providing optimism in ASX 200 iron ore shares today. Executive chairman Dr Andrew Forrest said:

The Fortescue team delivered our highest ever December quarterly shipments of 49.4 million tonnes, our best ever half year.

BHP share price snapshot

The BHP share price has jumped 22% in the last year.

BHP has a market capitalisation of about $251 billion based on the current share price.

The post Why is the BHP share price in the green today? appeared first on The Motley Fool Australia.

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More reading

• How to generate $50,000 of passive income from BHP shares
• The BHP share price has had a stellar start to 2023. Is it too late to buy?
• Investing in ASX 200 copper shares? Here’s the outlook for the red metal in 2023
• Does the Vanguard Australian Shares ETF’s unique structure deliver better returns than the ASX 200?
• Move over bank deposits! These ASX 200 mining shares are forecasting yields of over 5%

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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