It’s currently trading at $31.76.
BHP recently announced the sale of its US shale business to BP.
As you can see, BHP’s share price has been volatile over the past three months:
BHP share price down as fears mount over iron ore rally
The benchmark spot price of 62% fines rose .3% to $76.71, to cap off a 10.8% rally since October 5.
However, Chinese steel futures are set to fall heavily as the Chinese economy’s growth starts to taper off.
This could have an impact on iron ore prices going forward.
The ongoing trade war continues to weigh heavily on Chinese investors’ minds.
Since the start of 2018, Chinese stocks have lost more than 30% of their value, in perhaps the biggest story of the year.
Could a trade deal help BHP’s share price gain ground?
The news coming out of the Whitehouse is beginning to look more positive in recent days.
In a recent interview, Trump said ‘I can make a deal right now, I just say they’re not ready.’
But the likelihood of a deal is still unclear, with the President also saying that ‘I have US$267 billion [in tariffs] waiting to go if we can’t make a deal.’
BHP and the other major miners rely heavily on a thriving Chinese economy which relies heavily on their iron ore to make steel.
Recently, the major miners share price has been buoyed by the prospect of a Chinese stimulus plan.
For Markets & Money