These ASX 200 shares are surging as the iron ore price booms again

BHP, Fortescue and Champion Iron are having a bumper day of trading following a rise in the price of iron ore overnight.

| More on:
Rising mining ASX share price represented by man in hard hat making excited fists

Image source: Getty Images

3 ASX 200 iron ore shares are gaining today as the commodity’s price rallies once more, despite China’s attempts to cool it.

While most of Australia slept last night, the price of iron ore gained 4.9%. This also follows a 4.3% gain seen on Monday.

The commodity’s price is now back over the US$200 mark, with a tonne of iron ore currently selling for US$208.67.

Let’s take a look at what’s driving the iron ore price upwards, as well as 3 ASX 200 shares that deal with the commodity.

China’s attempts to lower the iron ore price

China is the world’s largest iron ore importer, and its surging construction levels have seen the country solidify its holding on the title in recent years.

China’s construction boom has increased its appetite for steel – of which iron ore is a key component.

Despite recent attempts by the People’s Republic to cool iron ore prices, they’ve skyrocketed this week. Earlier this month, China’s cabinet called for the implementation of export tariffs for some iron and steel products and the removal of export tax rebates for certain steel products.

According to today’s Australian Financial Review, yesterday the China Iron and Steel Association stated the nation plans to cut its steel capacity by 236 million tonnes by 2025.

China hoped these measures would relax the price of commodities but, so far, this doesn’t seem to have been the case.

3 ASX 200 iron ore shares on the rise today

BHP Group Ltd (ASX: BHP) 

BHP is currently the second-largest company by market capitalisation on the ASX. And, as the ASX’s largest iron ore miner, the BHP share price is often of interest to investors. This is particularly the case during an upswing in the price of iron ore.

In fact, when the commodity’s price hit US$209 per tonne last month, the BHP share price reached a new all-time high.

At the time of writing today, the BHP share price is up by 3.09%, with its shares trading at $49.39 each. But it’s not just the price of iron ore putting the focus on the company’s shares today.

BHP shares are also in the spotlight amid reports economists are about to upgrade their gross domestic product (GDP) forecasts following the surge in the iron ore price.

Fortescue Metals Group Limited (ASX: FMG) 

The Fortescue share price experienced volatility last month following fluctuations in the price of iron ore and China’s attempts to bring it lower.

But today, following iron ore’s positive price action overnight, Fortescue shares are having a robust trading session. Currently, they’re swapping hands for $23.34 – 2.28% higher than yesterday’s close.

Champion Iron Ltd (ASX: CIA)

Champion Iron is one of the ASX 200’s smaller iron ore shares.

The company has a market capitalisation of around $3.4 billion. For comparison, BHP’s market capitalisation is approximately $145 billion.

The Champion Iron share price has had a great year so far, pushing more than 40% higher. And, at the time of writing today, Champion Iron shares are trading 2.62% higher at $6.67 apiece.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

Motley Fool contributor Brooke Cooper 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 Bruce Jackson.

More on Resources Shares