The South32 Ltd (ASX: S32) share price is having a very strong session.
At the time of writing, the mining giant's shares are up over 5% to $4.72.
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Why is the South32 share price charging higher?
Investors have been scrambling to buy this miner's shares following a strong night for commodity prices.
According to CommSec, base metal prices climbed on Wednesday after data from China showed that manufacturing activity rose at the fastest pace in more than a decade in February.
Given that China is the world's biggest metals consumer, this has sparked hopes that demand could increase materially for metals. This sent the copper futures price up 1.7% and the aluminium futures price up 2.3%.
It isn't just the South32 share price that is rising today. The S&P/ASX 200 Resources index is up a solid 2.3% currently, with BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) contributing strongly with gains of over 3%.
Can South32 shares keep rising?
The team at Morgans believes there's plenty of room for the South32 share price to climb from here. Last month, its analysts put an add rating and $5.60 price target on its shares.
This implies potential upside of almost 19% for investors over the next 12 months.
