The Fortescue Metals Group Limited (ASX: FMG) share price has come under selling pressure from investors today.
This is despite the iron ore mining outfit not releasing any price-sensitive announcements to the ASX.
The company's shares closed down 4.69% at $18.71 on Friday after plunging to a three-month low of $18.61 earlier in the day.
It's worth noting that since this time last Friday, Fortescue shares have tumbled around 13% alongside broader market volatility.
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About the iron ore price
After hitting a three-week low of US$131.50, the current price of iron ore is a likely factor weighing down the Fortescue share price today.
The other ASX mining giants were also negatively impacted, with BHP Group Ltd (ASX: BHP) shares shedding 3.98% to close at $42.26 on Friday. The Rio Tinto Ltd (ASX: RIO) share price dropped 4.68% lower to $106.47 apiece at the close.
And looking at the sector-wide performance, the S&P/ASX 200 Resources Index (ASX: XJR) closed 2.63% lower to 5,515.2 points.
China's latest moves
News surrounding China's latest ploy to secure cheap iron ore through a domestic centralised buyer may also be causing concern among investors.
As reported by the Financial Times, the Xi Government is seeking to consolidate the country's iron ore imports through a new entity.
This would lead to an increase in pricing power over the global iron ore industry from Beijing, as well as reduced reliance on Australian exports.
However, some experts are sceptical about Beijing's ability to enforce such measures on small operators to join the project.
China is the world's largest consumer of iron ore, with 1 billion tonnes needed to feed its insatiable steel industry.
Currently, the Asian powerhouse takes in about 70% of the world's iron ore, provided mainly by Australia.
Fortescue share price snapshot
Fortescue shareholders have been on a rollercoaster ride over the past 12 months.
The company's shares hit a 52-week high of $26.58 last July as iron ore prices accelerated above US$220 a tonne.
However, this was short-lived, with the price of the steel-making ingredient quickly retracing in the following months until November 2021.
The Fortescue share price is down 16% from this time last year.
Based on today's price, the company commands a market capitalisation of approximately $61.21 billion.
