The Fortescue Metals Group Limited (ASX: FMG) share price is coming under selling pressure during morning trade.
This is despite the iron ore mining outfit not releasing any price-sensitive announcements to the ASX.
At the time of writing, Fortescue shares are fetching at $16.62 apiece, down 4.04%. Earlier in the session, the company's share price hit a low of $16.39, a 5.36% drop on yesterday's close.
For context, the S&P/ASX 200 Index (ASX: XJO) is treading also treading lower, down 0.14% so far today.
Let's take a look at what's dragging down the miner's shares today.
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Iron ore prices continue to sink
After stabilising for the last four weeks around the US$130 per metric tonne mark, iron ore prices have resumed their descent.
According to Trading Economics, the steel-making ingredient is trading at US$113 per tonne as of last night. This represents a fall of 21% compared to this time last month.
Mining.com reported that there's currently weak demand for iron ore as Chinese steel mills put their blast furnaces on hold. This is due to COVID-19 restrictions in the country as well as bad weather amid a gloomy economic outlook.
With rampant inflation and aggressive rate hikes from major central banks, investors are bracing for slower economic growth worldwide.
These negative factors have put downward pressure on iron ore prices which, in turn, impacts Fortescue's earnings.
Other shares in miners such as BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) are down 3.8% and 4.33%, respectively.
It's worth noting that Fortescue sometimes suffers larger share price drops than its peers due to the lower-grade iron ore the company produces.
At 62% Fe (iron), Fortescue's product is sold at a discounted rate below the benchmark price as opposed to its peers.
Fortescue share price snapshot
Adding to today's decline, the Fortescue share price has tumbled almost 30% in the past 12 months.
When looking year to date, its shares are down around 13%.
Fortescue presides a market capitalisation of approximately $51 billion.
