Motley Fool Australia

BHP, Fortescue, & Rio Tinto higher as iron ore prices surge again

ASX iron ore miners

Although the market has had a subdued start to the week, that hasn’t stopped Australia’s leading iron ore producers from storming higher this morning.

In morning trade the iron ore industry has been one of the best performing areas of the market thanks to yet another rise in the price of the base metal.

Here’s the state of play at the time of writing:

  • The BHP Group Ltd (ASX: BHP) share price is up 1.5% to $38.00.
  • The Fortescue Metals Group Limited (ASX: FMG) share price has pushed 1.6% higher to $8.35.
  • The Mount Gibson Iron Limited (ASX: MGX) share price has climbed 2.5% to $1.28.
  • The Rio Tinto Limited (ASX: RIO) share price is 1.5% higher to $102.76.

What happened with iron ore prices?

Iron ore prices continued their rise on Friday and closed in on five-year highs.

According to Metal Bulletin, the price of the benchmark 62% fines rose 1.5% to US$105.32 a tonne, leaving it trading within a whisker of its five-year high of US$105.78 a tonne.

Gains were also made by both lower and higher grade ore. The price of the lower grade 58% fines rose 0.3% to finish the week at US$87.02 a tonne, whereas the higher grade 65% fines closed the week with a 0.7% gain to US$119.30 a tonne.

What’s next for iron ore prices?

The good news for shareholders of these miners is that all signs are pointing to further gains today after Chinese iron ore futures finished the week on a very strong note.

In fact, futures contracts closed the week at a record high thanks to increasing demand from Chinese steel producers after a production ramp up and declines in stockpiles at Chinese ports.

If this leads to further increases in iron ore prices this week, it wouldn’t be at all surprising to see the likes of BHP, Fortescue, and Rio Tinto continue their charge higher.

Forget what just happened. We think this stock could be Australia's next MONSTER IPO...

One little-known Australian IPO has doubled in value since January, and renowned Australian Moonshot stock picker Anirban Mahanti sees a potential millionaire-maker in waiting...

Because 'Doc' Mahanti believes this fast-growing company has all the hallmarks of genuine Moonshot potential, forget 'buy now pay later', this stock could be the next hot stock on the ASX.

Returns as of 6th October 2020

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Related Articles...