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)
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.