Why is the Fortescue Metals (ASX:FMG) share price sliding 5% today?

What is impacting the Fortescue share price today?

| More on:
Worker in hard hat looks puzzled with one hand on chin

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

sdf

Key points

  • The Fortescue Metals share price is in the red nearly 5% today 
  • Global iron ore prices have plunged amid China COVID lockdowns 
  • Fortescue exported more than 93.1 million tonnes of iron ore in the first half of FY22

The Fortescue Metals Group Ltd (ASX: FMG) share price is well in the red on the ASX today.

The company's shares are currently swapping hands at $17.125, a 5.07% fall. In comparison, the  S&P/ASX 200 Index (ASX: XJO) is down 0.56% at the time of writing.

Let's take a look at what could be impacting the Fortescue share price.

Iron ore prices

Iron ore prices appear to be impacting the Fortescue share price today. Fortescue exported more than 93.1 million tonnes of iron ore in H1 FY22.

However, global iron ore prices have plunged recently amid resurgent COVID-19 lockdowns in China, according to a report on NAB trade. A climb in infections is raising concerns about China's projected economic growth, the report stated.

Iron ore's top traded May contract on the Dalian Commodity Exchange dropped 7% to 759.50 yuan (AU$166.43) a tonne, the Australian Financial Review reported. The iron ore April contract on the Singapore Exchange also fell 8.8% to $US143.80 per tonne. This is a two week low.

At the same time, the share price of fellow ASX miner Rio Tinto Ltd (ASX: RIO) is down more than 4% at the time of writing, currently trading at $106.66. BHP Group Ltd (ASX: BHP) shares are also down more than 4%.

In other news, Fortescue founder Andrew 'Twiggy' Forrest met with Egypt's Prime Minister on Monday. As my Foolish colleague Tristan reported, the meeting explored potential green hydrogen opportunities.

Fortescue on the ASX recap

The Fortescue share price has lost 16% in the past year. It's fallen 24% in the past month alone, shedding 10.6% year to date.

Meanwhile, the benchmark ASX index has returned nearly 5% over the past 12 months.

Fortescue has a market capitalisation of about $53 billion based on its current share price.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Resources Shares

Is the Fortescue share price a buy for passive income?

Let’s dig into the potential of this mining giant.

Read more »

Female miner standing next to a haul truck in a large mining operation.
Resources Shares

Major miners fall as iron ore prices continue to sink

Waning Chinese demand and oversupply concerns push iron ore prices lower.   

Read more »

A mining worker clenches his fists celebrating success at sunset in the mine.
Resources Shares

Would I buy Pilbara Minerals shares?

Are investors missing an opportunity with this lithium stock?

Read more »

Three miners looking at a tablet.
Resources Shares

Here's the earnings forecast out to 2029 for BHP shares

Let’s dig into the predictions.

Read more »

A smiling miner wearing a high vis vest and yellow hardhat does the thumbs up in front of an open pit copper mine.
Broker Notes

Why Macquarie expects this ASX All Ords copper stock to soar 48% in a year

Macquarie forecasts another big year of gains ahead for this ASX All Ords copper stock. But why?

Read more »

Female miner standing smiling in a mine.
Broker Notes

Why Macquarie predicts Pilbara Minerals shares could surge 71%

Macquarie forecasts a big rebound ahead for Pilbara Minerals shares. Let’s find out why.

Read more »

Two mining workers in orange high vis vests walk and talk at a mining site.
Resources Shares

ASX All Ords mining stock sinks on US silver acquisitions

Investors are bidding down the ASX All Ords miner on US acquisition news. But why?

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

How these 2 tailwinds could boost the BHP share price into 2026

A leading expert forecasts that BHP shares are set to recover. But why?

Read more »