The BHP Group Ltd (ASX: BHP) share price is defying the wider sell-off today, up 0.7% in early trade before giving back some of those gains.
Shares in the S&P/ASX 200 Index (ASX: XJO) mining giant closed flat yesterday, trading for $43.30. In morning trade on Wednesday, shares are swapping hands for $43.41 apiece, up 0.3%.
That's a lot better than the 0.4% loss posted by the ASX 200 at this same time.
And, in a better like-for-like comparison, the S&P/ASX 200 Resource Index (ASX: XJR) is down 0.1%.
Here's what's going on.
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Why is the BHP share price outperforming?
The BHP share price is gaining despite headwinds on several fronts today.
First, while the iron ore price slipped 1% overnight to just under US$115 per tonne, the industrial metal – BHP's top revenue earner – has been defying consensus expectations of a sharp retrace to US$100 or below.
That looks to be helping lift the other ASX 200 iron ore miners today as well.
While a sizeable retrace in iron ore prices may yet eventuate, stronger than expected steel demand from China's booming EV manufacturers and the slow drip freed of government stimulus to spur its ailing property markets look to be supporting the iron ore price at higher than expected levels.
The ASX 200 miner is also managing to shake off the higher interest rates for longer fears that are weighing on much of the market today. That could be because of its strong balance sheet, which saw Moody's upgrade BHP's credit rating to A1 during FY 2023.
Then there's the looming US government shutdown that's rattling global markets more broadly. While a deal was reached in the US Senate yesterday, that still needs to pass through the House before President Joe Biden can sign off on it.
While the BHP share price won't be immune to the global ripples a US government shutdown would cause, the miner is clearly demonstrating its resilience during uncertain times today.
