Melbourne, June 17, 2026, 02:01 AEST
- BHP Group Ltd edged up 0.02% to A$65.19 on the ASX, with shares near their A$65.50 52-week high. BHP
- S&P/ASX 200 closed little changed at 8,917.70 as the Reserve Bank of Australia kept rates steady at 4.35%. MarketScreener
- BHP’s July 16 operational review for the year ended June 30 is the next catalyst on the schedule. Full-year results follow on August 18. BHP
BHP Group Ltd BHP barely budged in the latest session, with shares closing at A$65.19, up 0.02%. The miner traded in a tight range between A$64.88 and A$65.50, sticking close to its 52-week high after a strong climb. The S&P/ASX 200 was flat as well, ending up just 0.04% at 8,917.70. Investors weighed the RBA decision to leave rates on hold, with the central bank warning more tightening is not off the table.
BHP’s main boost isn’t coming from its own news, but from steel demand. On Tuesday, Reuters said Australian iron ore miners are looking at India and Southeast Asia for future growth, as China’s demand fades. India, already the No. 2 steel producer globally, wants to take output up to 400 million tonnes by 2035-36, up from the current 168 million tonnes. Speaking in Singapore, BHP sales and marketing head Michiel Hovers said the miner expects India’s need for metallurgical coal—used in steel—will double by 2050. Reuters
BHP’s valuation still depends a lot on iron ore and steelmaking coal, tying it to Asian steel demand. Bulls say India and ASEAN growth could offset weak demand from China, and BHP’s copper business adds another reason to buy. The company’s most recent half-year showed underlying profit up 22% to US$6.20 billion. Copper accounted for 51% of operating earnings, the first time it’s led the mix, and BHP kept its interim dividend at US$0.73 per share. The company is betting copper demand will get a lift from electrification, data centers, and grid investment. Reuters
Bearish signals are tough to dismiss now. Reuters said China’s steel output hit a seven-year low in 2025. State-run China Mineral Resources Group has ramped up iron ore negotiating tactics, including bans on buying. That can weigh on realised prices, or what BHP actually gets after discounts and contract terms. At home, BHP is facing a possible strike by electrical workers at its Port Hedland export port before June 30, a union told Reuters late last month. Port Hedland handles Western Australian iron ore exports, so even talk of a strike can move sentiment. Reuters
BHP is trading at what looks like fair value with some risk today, not at a bargain. Google Finance puts BHP’s price-to-earnings ratio at 22.82 and the dividend yield at 3.00%. The average analyst target for 12 months is A$58.55, which is lower than the current price of A$65.19. Bulls are counting on copper, tight costs and India steel demand to drive more growth. Bears see BHP priced for a lot to go right, while China demand, iron ore prices and labour are still issues. Google
