BHP share price started the week lower ahead of Australia’s key inflation data later this week on Wednesday. The stock ended Monday’s trading session 1.10% lower at A$49.40. The BHP stock has climbed 7.16% in its year-to-date price. The firm has a total market capitalization of A$252.99 billion.

BHP’s Fundamental Stance

BHP Group Limited, the world’s largest miner, reported record iron ore production for its fiscal first half. Data by the Australian miner shows that production of steelmaking materials in the six months to December 31 came in higher at 132 million tons.

According to the world’s largest listed miner, its iron ore segment’s production ticked 2% higher year-on-year. This was driven by a softer labor market and favorable weather conditions. Strong supply chain performance also boosted the company’s iron ore production over the period.

The mining firm maintained its iron ore production forecast unchanged for 2023. However, BHP warned that copper production would be at the low end this year as the world’s biggest copper mine, Escondida in Chile, faces constraints after being hit by industrial action.

The company predicts that China would drive commodity demand in 2023 as the country eases its covid-19 restrictions. BHP’s CEO, Mike Henry said in a statement earlier on Thursday;

“China’s pro-growth policies, including in the property sector, and an easing of Covid-19 restrictions are expected to support progressive improvement from the difficult economic conditions of the first half,”

BHP Share Price Forecast

The daily chart shows that the BHP share price has been on a slow upward trend for the past few weeks. The stock has managed to remain above the 50-day and 200-day exponential moving averages. It is also hovering above the 50-day and 100-day moving averages. Its Relative Strength Index (RSI) is slightly below the overbought region but above the neutral region.

Therefore, with China’s reopening, I expect the BHP stock price to rise as bulls eye the next resistance at A$52.20. On the other hand, a move below the support at A$46.20 will invalidate the bullish thesis.