The S&P/ASX 200 Index (ASX: XJO) is having a pretty pleasing start to the trading week so far this Monday. At the time of writing, the ASX 200 is in the green at around 7,160 points. But it's ASX 200 mining shares that are really going nuts today.
Just take the BHP Group Ltd (ASX: BHP) share price. It's currently up a whopping 5.08% at $44.23 a share at present. Shares in Rio Tinto Limited (ASX: RIO) are doing almost as well, up 4.77% at $107.53 apiece.
But it's Fortescue Metals Group Limited (ASX: FMG) that is the clear leader. Fortescue shares have leapt an eye-watering 9.01% today so far. The iron ore giant is currently at $19.36 a share after closing at just $17.76 last Friday.
These significant gains appear to be concentrated in the iron ore sector, though. Woodside Energy Group Ltd (ASX: WDS) is doing well today. But the energy share is 'only' up by a far tamer 1.32% at the time of writing to $39.01 a share. After a stellar week last week, ASX gold shares are barely breaking even today.
So why are the big iron miners basking in the sun today?
Why are ASX 200 mining shares like BHP on fire today?
Well, no doubt a rising iron ore price is helping. Iron ore had a stellar end to the trading week last week, closing at US$89 per tonne, up a healthy 2.02%.
But further, we have recently seen the news that could indicate that China may finally be prepared to loosen its much-maligned 'zero-COVID' policies.
According to reporting in the Australian Financial Review (AFR) over the weekend, China has just announced a relaxation of travel-related restrictions. These include reduced quarantine times for both inbound travellers and close contacts of infected persons.
It includes removing rules suspending flights if more than five passengers on board test positive for COVID. This could boost travel in and out of the country.
According to the report, financial markets have interpreted these changes as representing "a growing willingness by Beijing to reduce the economic impact of lockdowns and move towards reopening the country".
China is, of course, one of the world's largest consumers of iron ore, and there is little doubt that the economic sluggishness that its COVID-zero policies have caused has played a role in the weakness of the iron ore price over 2022 thus far.
Thus, it makes sense that investors are interpreting his news as good for the largest ASX 200 iron ore mining shares like BHP, Rio and Fortescue.
