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Highlights:
- BHP shares were trading at AU$40.72 apiece at 10:39 AM AEDT on 11 October 2022.
- In the past one year, BHP share price has increased by 6.88%.
- Peers of BHP, Rio Tito and Fortescue were also seen registering gains on ASX today.
Share price of the Australian mining giant, BHP Group Ltd (ASX:BHP) has been heading north on Tuesday (11 October 2022) morning. At 10:39 AM AEDT, BHP shares were quoted at AU$40.72 per share, up 1.62%. With this, BHP shares have marked a gain of approximately 6.88% in the past one year. On a year-to-date basis, it has decreased by 3.96%. In the last six months, it has dropped 21.25% and rose by 3.27% in one month.
Market capitalisation of BHP is AU$202.98 billion.
Why is BHP's share price on the rise today?
BHP's share price is in the green today, although the mining giant shared no price-sensitive news.
BHP shares are likely following the performance of its benchmark index, ASX 200 Materials (INDEXASX:XMJ) which recorded a gain of 1.42% at 11:04 AM AEDT. Worth mentioning here is that the materials sector was the best-performing sector around the same time among the eleven significant sectors.
Peers of BHP, like Rio Tinto Limited (ASX:RIO) and Fortescue Metals Group Limited (ASX:FMG) are also registering gains on ASX. At 10:53 AM AEDT, Rio was up 1.09%, and FMG was up 1.47%.
Road ahead!
BHP said that increasing living standards, infrastructure requirements and population growth are expected to push the demand for nonferrous metals, steel and fertilisers higher for decades.
The company expects that the operating environment will remain volatile due to Covid-19, geopolitical uncertainty, Europe’s energy crisis and so on.
In the context of the China economy, the miner said that it is expected to improve during FY23. For the rest of the world (ROW) steel market, the company expects it to be under substantial pressure in FY23 (financial year 2023).
In the metallurgical coal segment, the company expects that high-quality metallurgical coal will be used by the blast furnace steel-making industry. Seaborne’s hard-coking coal demand is expected to grow alongside the steel industry in coking coal importing countries.
In the long term, demand for energy coal is estimated to fall under deep decarbonisation scenarios.
The company shared the belief that scrap collection and mine supply would grow in future and would drive the near-term demand for copper. In the long run, traditional end-use demand for copper is forecasted to remain solid.
The electrification mega-trend offers great upside potential in the nickel and copper market in the longer term, said BHP in a statement.
