The BHP Group Ltd (ASX: BHP) share price is edging closer to $50 on Friday.
BHP shares are up 0.45% today and are currently fetching $49.60. For perspective, the S&P/ASX 200 (ASX: XJO) is rising 0.67% today.
Let's take a look at what is going on with the BHP share price.
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Will BHP hit $50?
BHP shares are close to hitting the milestone $50 mark.
Goldman Sachs has lifted its price target on BHP shares by 12% to $48.10, as my Foolish colleague Bronwyn reported earlier today.
BHP is a major iron ore producer. Iron ore futures on the Singapore Exchange are currently up 2.18% to US$124.80.
The commodity rose on continued optimism about demand from China, Reuters reported. Iron ore is used to make steel.
Huatai Futures analysts, quoted by the publication, said:
Considering that the government's full support for real estate and the post-epidemic economic recovery will stimulate consumption of iron ore, it is still recommended to call back more iron ore.
However, the Australian Government Office of the Chief Economist predicts the iron ore price to average US$85 a tonne in 2023.
The report stated the "price outlook in 2023 relies on China's fiscal stimulus and property market".
A stabilisation of China's real estate sector, in combination with the country's substantial infrastructure stimulus and only modest supply growth from Australia and Brazil, is expected to provide support to steel and iron ore prices over the outlook period.
The spot price for 62% Fe iron ore fines (FOB) is forecast to average US$85 a tonne in 2023.
Customs data from China released today shows iron ore imports fell 8.1% in December to 90.86 million tonnes.
BHP also produces copper, nickel, potash and metallurgical coal. Goldman Sachs has recently tipped the copper price to rise to US$11,500 a tonne by the end of the year. Copper prices reached US$9,000 a tonne this week on the London Metal Exchange. BHP is planning to acquire 100% of copper producer Oz Minerals Limited (ASX: OZL), with a scheme meeting planned in late March or early 2023.
BHP share price snapshot
The BHP share price has jumped 19% in the last year.
BHP has a market capitalisation of about $251 billion based on the current share price.
