ASX 200 mining shares soar amid strong week for materials sector

One ASX 200 mining share ripped 32% higher on strengthened commodity prices alone last week.

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Key points

  • ASX 200 materials shares led the market last week, with a 5.91% rise driven by surging commodity prices in iron ore, copper, gold, and silver, influencing major mining stocks.
  • BHP, now the world’s largest copper producer, saw a 6.51% increase in its share price, while other notable gains included Rio Tinto at 8.07%, Sandfire Resources at 10.98%, and Greatland Resources at 11.58%.
  • The broader materials sector, including industries like chemicals and construction materials, showed mixed results: BlueScope Steel rose 1.2%, while James Hardie and Amcor saw declines in their stock prices.

ASX 200 materials shares lead the market sectors last week, rising 5.91% primarily due to the major mining stocks.

Demonstrating the miners' dominance last week, the S&P/ASX 300 Metal & Mining Index (ASX: XMM) rose 6.71% by comparison.

The S&P/ASX 200 Index (ASX: XJO) lifted 0.16% to close out the week at 8,787.7 points.

Strengthened commodity prices buoyed ASX 200 mining shares last week.

The iron ore price held above US$105 per tonne over the week, supporting ASX 200 iron ore shares.

Trading Economics data shows the iron ore price has risen 4% over the past month.

Copper futures surged to a near 2-month high of US$4.75 per pound in the fallout from a mine disaster in Indonesia earlier this month.

Major global copper producer, Freeport-McMoRan Inc declared force majeure on production from its Grasberg mine last week.

Freeport cut its quarterly copper sales guidance by 4% and gold 6%, creating a supply shock that supported the two commodities' value.

This supported ASX 200 copper shares last week.

BHP Group Ltd (ASX: BHP) shares, in particular, benefited given the 'Big Australian' is now the world's largest copper producer.

The copper price is up by more than 7% over the past month.

The gold price continued its astounding run, hitting a new record above US$3,700 per ounce last week and boosting ASX 200 gold shares.

The S&P/ASX All Ords Gold Index (ASX: XGD) rose 8.25% last week. The gold price is now 10% higher over the past month.

Another commodity on a strong run right now is silver, which has risen 16% over the past month, supporting ASX 200 silver shares.

Only three of the 11 market sectors finished the week in the green.

Let's recap.

ASX 200 mining shares boosted by higher commodity prices

BHP shares ripped 6.51% over the week to finish at $42.22 on Friday. BHP paid a final dividend of 91.92 cents per share on Thursday.

The Fortescue Ltd (ASX: FMG) share price increased 2.19% to $19.13.

The market's second biggest ASX 200 mining share paid its final dividend of 60 cents per share on Friday.

Rio Tinto Ltd (ASX: RIO) shares lifted 8.07% to $123.20 and Mineral Resources Ltd (ASX: MIN) rose 6.25% to $41.29.

Pure-play copper share, Sandfire Resources Ltd (ASX: SFR) soared 10.98% to $13.65 on Friday.

Capstone Copper Corp (ASX: CSC) shares rose 5.96% to $12.27.

The market's largest ASX 200 gold mining share, Northern Star Resources Ltd (ASX: NST), streaked 9.8% higher to $22.74.

The Evolution Mining Ltd (ASX: EVN) share price leapt 8.21% to $10.28.

Newmont Corporation CDI (ASX: NEM) shares rose 6.68% to $127.17.

Gold and copper miner, Greatland Resources Ltd (ASX: GGP), lifted 11.58% to $7.13 during its first week as part of the ASX 200 index.

ASX 200 silver explorer, Silver Mines Limited (ASX: SVL), skyrocketed 32% on no news last week to close at a 52-week high of 19 cents.

What about other ASX materials shares?

The materials sector includes companies supplying chemicals, industrial gases, construction materials, and plastic products packaging.

Stock in building materials supplier James Hardie Industries plc (ASX: JHX) decreased 2.04% to $28.27 per share.

The BlueScope Steel Ltd (ASX: BSL) share price rose 1.2% to $22.70.

The share price of packaging company Amcor CDI (ASX: AMC) lost 3.8% to close at a near 52-week low of $12.14.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

S&P/ASX 200 market sectorChange last week
Materials (ASX: XMJ)5.91%
Energy (ASX: XEJ)1.53%
Utilities (ASX: XUJ)0.26%
Communication (ASX: XTJ)(0.37%)
Industrials (ASX: XNJ)(0.91%)
Consumer Discretionary (ASX: XDJ)(0.93%)
Financials (ASX: XFJ)(1.14%)
Information Technology (ASX: XIJ)(1.32%)
Consumer Staples (ASX: XSJ)(1.76%)
A-REIT (ASX: XPJ)(2.47%)
Healthcare (ASX: XHJ)(2.52%)

Motley Fool contributor Bronwyn Allen has positions in BHP Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Amcor Plc. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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