The Fortescue Metals Group Ltd (ASX: FMG) share price is rallying together with the broader S&P/ASX 200 Index (ASX: XJO) today despite a fall in iron ore prices.
At the time of writing, the Fortescue share price is up 2.86% to $14.40 while the ASX 200 is up 1% to 7,343 points.
Fortescue share price rallies against all odds
Competitors edge lower in overnight trade
Fortescue shrugged off a weak overnight performance from BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) and its counterparts listed on the New York Stock Exchange.
Shares in the iron ore majors tipped a respective 0.59% and 0.35% lower despite all three major US indices closing in positive territory.
Iron ore prices weak after recent bounce
The Fortescue share price is also rallying despite weaker iron ore prices.
According to Fastmarkets, spot prices fell US$4.83 or 3.7% to US$124.17 a tonne on Wednesday.
In addition, Chinese iron ore futures on the Dalian Commodity Exchange opened lower this morning. The most active futures contracts for January 2022 delivery are currently down 3.1% to about 730 yuan (US$113) a tonne.
China's property debt crisis intensifies
Evergrande missed another round of interest payments worth US$150 million this week, after missing two other payments in September.
Reuters flagged that China's property debt crisis is now far-reaching, with players such as Evergrande's mid-sized rival Fantasia missing a payment and Modern Land and Sinic Holdings seeking to delay payment deadlines.
These concerns have had a flow-on effect on China's housing prices. Home values in 11 key cities fell 1.1% month-on-month in August and 1.6% in September.
According to Yuantalks, these falls represent the steepest drops since late 2019.
Beijing Winter Olympics weigh on steel output
Steel mills in almost 30 cities in Northern China will face production cuts between November and March 2022 to ensure the skies are clear for the Winter Olympic Games in Beijing and the neighbouring Hebei province, according to Bloomberg.
China's strict mandate on steel production and emissions was a driving force behind the Fortescue share price sell-off between August and late September.
