The Motley Fool

Fortescue Metals share price falls over 7%

The Fortescue Metals Group Limited (ASX: FMG) share price fell over 7%, making it one of the worst falls in the ASX 200 (ASX: XJO). Over the past day the iron ore price has fallen about 1.9% in US dollar terms. 

Some parts of China have gone into lockdown, with holidays being extended until at least a week into February. Obviously China is a huge source of demand for Australian iron ore, so if demand for iron falls then it could be bad news for companies like Fortescue. 

Since the start of 23 January 2020 the Fortescue share price is actually down around 10%, though it’s still higher than it was on the 16 January 2020, so it’s not as though it has fallen that far yet. 

Time will tell how much more the price and demand of iron ore will fall. The All Ordinaries (ASX: XAO) fell 1.45% on Tuesday and the Chinese stock exchanges in Shanghai & Shenzhen are now going to stay closed until at least 2 February 2020. 

NEW. The Motley Fool AU Releases Five Cheap and Good Stocks to Buy for 2020 and beyond!….

Our experts here at The Motley Fool Australia have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading over 40% off it's high, all while offering a fully franked dividend yield over 3%...

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click here or the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR YOUR FREE REPORT!

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.