BHP Group Ltd (ASX: BHP) shares fell around 1% on Thursday, to close the day at $60.55 a piece.
But the decline barely dented gains made recently. May was a strong month for the ASX mining stock.
Despite the latest decline, the shares are still 32% higher for the year-to-date and over 57% higher than this time 12 months ago. BHP shares are still trading close to an all-time high of $62.06 that the mining giant recorded in mid-May.
Now the question is, have BHP shares now reached a ceiling, or is there more to come in June?
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What happened to BHP shares in May?
There have been a few tailwinds over the past month pushing the miner's shares to record highs.
A boom in commodities prices and a new non-executive director appointment helped drive the miner's share value upwards.
Investors have rotated back into diversified miners after the price of copper surged close to a multi-year high.
According to Trading Economics, copper futures climbed to an all-time high of over US$6.6 per pound in mid-May.
Stronger investor sentiment for the red metal comes off the back of signs that the US and Iran were moving closer to a deal that could reopen the Strait of Hormuz.
Copper is one of the world's hottest metals right now, with strong demand for usage in electric vehicles, solar panels and data centres. And the demand isn't going away anytime soon.
Around the same time, the miner announced the appointment of Mark Vassella as a Non-Executive Director. Vasella is an industry veteran, having served many years as CEO of BlueScope Steel Ltd (ASX: BSL). Investors appeared to be thrilled with the news.
The soaring share price also saw the miner regain the crown as the largest stock on the ASX. BHP now has a market capitalization of around $307 billion, according to Market Index.
Should I sell my shares in June?
I think BHP shares have now peaked. I'm not sure that we'll see much more out of the mining giant's shares over the next few months, but given the sustained tailwinds and strong copper demand, there is no sign that the shares will tumble any time soon either.
Analysts seem to agree.
TradingView data shows that 15 out of 18 analysts have a hold rating on BHP shares. The average $57.03 target price implies a potential 6% downside at the time of writing.
Although forecasts that the shares could increase to a maximum target price of $68.63 imply there is potential for another 14% upside.
