The BHP Group Ltd (ASX: BHP) share price is charging higher today, up 2.7% in late morning trade.
Shares in the S&P/ASX 200 Index (ASX: XJO) mining giant closed yesterday trading for $44.29. At the time of writing, shares are changing hands for $45.49 apiece.
For context, the ASX 200 is up 0.22% at this same time.
Here's why ASX 200 investors are hitting the buy button on BHP shares today.
Image source: Getty Images
What's piquing ASX 200 investor interest today?
With no fresh price-sensitive news out from the miner, ASX 200 investors look to be bidding up the BHP share price on the back of another increase in the iron ore price.
The industrial metal has been defying most analysts' bearish forecasts to instead march higher. Iron ore gained another 2.5% overnight to trade for US$111.55 per tonne.
It was only back on 25 May that this same tonne was trading for US$99, with many experts forecasting a retrace down to US$90 before finding support.
It's not just iron ore that's up, either.
The copper price gained 1.8% overnight to trade for US$8,460.00 per tonne. That's up from US$7,901.50 per tonne on 25 May.
That should be offering some tailwinds to the BHP share price too, as copper is the miner's number two revenue earner.
Meanwhile, in China…
Both industrial metals look to be benefiting from some major government stimulus plans brewing in China.
Following yesterday's surprise rate cut from the People's Bank of China, the government is debating a range of measures to boost its lagging economy. That could help spur the real estate sector, driving demand for copper and iron ore.
This likely helped lift the BHP share price in US markets yesterday (overnight Aussie time), where shares closed up 3.2% on the NYSE.
Commenting on the changes afoot with Chinese policies, Larry Hu, head of China economics at Macquarie Group, said (quoted by Bloomberg), "The rate cut today sent a clear signal that policy would turn more supportive in the coming months, a significant shift from the tapering in stimulus since April."
BHP share price snapshot
The BHP share price has been a stellar performer so far in June, up 8.2% since the closing bell on 31 May. Shares are up 3% over the past 12 months.
