The BHP Group Ltd (ASX: BHP) share price is leaping higher today.
BHP shares are currently up 1.01% to $49.735. For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) share price is climbing 0.45% today.
Let's take a look at what could be weighing on the BHP share price today.
What's going on?
BHP is not the only iron ore producer in the green today. The Rio Tinto Ltd (ASX: RIO) share price is up 1.12%, while the Fortescue Metals Group Limited (ASX: FMG) share price is climbing 1.09%.
Iron ore China futures are currently up 0.53% on the Singapore Exchange at last look.
China expert and director of iron ore research Philip Kirchlechner is optimistic strong iron ore demand can continue, The Western Australian reported.
Copper prices also remained elevated overnight at US $9,300 per tonne. Commenting on the movement of commodities, ANZ rates strategist Jack Chambers said in a research note this morning:
Copper held steady above USD9300/t. Supply issues and strong demand prospects from China are limiting any profit taking even after prices rising 12% this month.
Iron ore prices traded sideways in absence of guidance from the Chinese market.
BHP is proposing to acquire 100% of copper explorer OZ Minerals Limited (ASX: OZL). A scheme meeting to approve the potential takeover is due in late March or early April. BHP also entered a deal with Canadian company Mundoro Capital Inc. (TSXV: MUN) to explore copper in Serbia this week.
Meanwhile, Fortescue's record half iron ore production may also be providing optimism in ASX 200 iron ore shares today. Executive chairman Dr Andrew Forrest said:
The Fortescue team delivered our highest ever December quarterly shipments of 49.4 million tonnes, our best ever half year.
BHP share price snapshot
The BHP share price has jumped 22% in the last year.
BHP has a market capitalisation of about $251 billion based on the current share price.
