The Fortescue Metals Group Limited (ASX: FMG) share price dropped 6% today, but is still up more than 50% over just the course of 2019 on the back of a recovery in confidence in the economic outlook and iron ore price going from strength to strength.
Unfortunately much of the strength in the iron ore price has come about due to the tragic events in Brazil that saw an iron ore mine dam operated by Brazilian miner Vale S.A collapse in a disaster that has reportedly left more than 300 people dead or still missing.
As a consequence Vale S.A. has been ordered to shutdown many of its operations in Brazil leading to a supply shortfall out of the world's second-biggest iron ore mining nation behind Australia.
According to Marketindex the iron ore price last closed at US86.25 a tonne, around 27% higher than levels it traded at in December 2018.
This iron ore price rise has helped lift the share prices of Fortescue, Rio Tinto Limited (ASX: RIO) and BHP Billiton Limited (ASX: BHP), although whether it's sustained remains to be seen.
