What's happening: A strong rebound in copper prices and a slight recovery for iron ore have helped boost BHP Billiton Limited's (ASX: BHP) shares after hitting a near six-year low yesterday. The stock rose as much as 2.8% to $27.66 before retreating back to $27.36 in early afternoon trade.
Why it's happening: BHP's shares have come under enormous pressure in recent months with the commodities crisis having shifted into a higher gear. While oil and iron ore (which are BHP's two biggest earners) have crashed in price, coal and copper are also sitting at multi-year lows, putting pressure on the miner's cash flows.
After having recorded its biggest one-day drop in more than three years earlier in the week, copper prices bounced 2.3% overnight to US$2.5630 per pound, according to The Australian. Meanwhile, iron ore also managed to rise marginally to be trading at US$68.63 a tonne, according to data from the Metal Bulletin Ltd.
Unfortunately, the gains could be short-lived with most analysts remaining bearish on the outlook for each of the commodities. As such, it wouldn't be surprising if BHP's shares did fall further over the coming months, offering investors an even better opportunity to stock up on the Big Australian.
