Why did the BHP share price descend in May?

How did BHP perform in May?

| More on:
A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • BHP shares shed 5% in May
  • Fortescue and Rio Tinto shares also declined
  • Iron ore and copper prices descended on weaker sentiment out of China

The BHP Group Ltd (ASX: BHP) share price shed 5% in the month of May but can it recover?

The mining giant's share price slid from $44.40 at market close on 28 April to $42.02 at 31 May. For perspective, the S&P/ASX 200 Index (ASX: XJO) fell 2.98% in the same time frame.

So what happened to the BHP share price in May?

What went on?

The BHP share price was not the only ASX 200 mining giant to drop in May. Fortescue Metals Group Ltd (ASX: FMG) shares slid 8%, while Rio Tinto Ltd (ASX: RIO) shares slid nearly 5%.

The iron ore price dropped nearly 5% from US$105 a tonne to US$100 a tonne during the month of May, trading economics data shows. Copper prices also lost 6%.

Iron ore prices fell during the month amid "ongoing concerns of weakening steel demand". Data showed lower industrial output growth and slower fixed asset investment.

ANZ senior economist Daniel Hynes also lowered the price target on iron ore to US$95 a tonne, as my Foolish colleague Bernd reported.

In early May, BHP cleared the final hurdle to acquire 100% of the shares of copper miner Oz Minerals Limited (ASX: OZL).

Commenting on the news, BHP CEO Mike Henry said:

This acquisition strengthens BHP's portfolio in copper and nickel and is in line with our strategy to meet increasing demand for the critical minerals needed for electric vehicles, wind turbines and solar panels to support the energy transition.

Looking at the future, Goldman Sachs recommends the BHP share price as a buy. The company is tipping BHP to deliver fully franked dividends of US$2.05 per share in FY 2023 and US$1.63 a share in FY 2024.

Goldman likes BHP's commodity exposure, especially iron ore and copper. Commenting on BHP, analysts said:

We remain bullish on BHP's commodity mix: With iron ore fundamentals supportive into 2Q23, copper on growing deficits even with global growth risks and metallurgical coal on constrained global supply growth.

BHP share price snapshot

The BHP share price has shed more than 5% in the last year.

Created with Highcharts 11.4.3BHP Group PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

This ASX 200 mining share has a market cap of about $219 billion based on the latest share price.

Should you invest $1,000 in Car Group Ltd right now?

Before you buy Car Group Ltd shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Car Group Ltd wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

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

More on Materials Shares

A female miner wearing a high vis vest and hard hard smiles and holds a clipboard while inspecting a mine site with a colleague.
Materials Shares

Why are Fortescue shares charging higher today?

What is getting investors excited today? Let's find out.

Read more »

Business people discussing project on digital tablet.
Materials Shares

What does Macquarie think Liontown Resources shares are worth?

Let's see if analysts think that this lithium miner is in the buy zone or best avoided.

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Materials Shares

Lynas shares charge higher on big news

What is getting investors excited today? Let's find out.

Read more »

Lion holding and screaming into a yellow loudspeaker on a blue background, symbolising an announcement from Liontown.
Materials Shares

Liontown Resources shares roar higher on big news

This lithium miner is catching the eye with some big news. Here's what is happening.

Read more »

Image of young successful engineer, with blueprints, notepad and digital tablet, observing the project implementation on construction site and in mine.
Materials Shares

What does Macquarie think BHP shares are worth?

Is now a good time to buy the miner's shares? Let's find out.

Read more »

Middle age caucasian man smiling confident drinking coffee at home.
Materials Shares

What does Macquarie think Pilbara Minerals shares are worth?

Is this lithium miner dirt cheap? Let's find out.

Read more »

Two miners standing together.
Materials Shares

Is it time to buy this beaten down lithium share?

This diversified miner’s share price has been hit on multiple fronts. What does it mean for investors?

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Materials Shares

Pilbara Minerals share price falls on 30% quarterly revenue slump

ASX investors are bidding down Pilbara Minerals shares on Thursday. Here’s why.

Read more »