The share price of Fortescue Metals Group Limited (ASX: FMG) finished at $4.94 on Monday, a 1% increase from Friday. This came as the price of iron ore increased sharply last Friday night.
Fortescue Metals is an Australian mining company, focused primarily on iron ore.
Reports released on Friday indicate that China's iron ore imports hit a new record as China's overall imports increased by 18.7% in September.
Iron Ore is used to make steel, which is needed for construction. Economic growth in China leads to greater need for steel in construction, which drives the price of iron ore up.
Currently, China's construction boom shows no signs of slowing down. The governor of the People's Bank of China gave a positive forecast on China's economic growth at the G30 International Banking Seminar last week, believing it will be able to grow by 7% in the second half of the year. There may be more iron ore price gains over the year ahead.