Iron ore prices are flat, so why is the Fortescue (ASX:FMG) share price jumping higher today?

Here’s what might be driving the Fortescue share price on Monday.

| More on:
A person takes a huge leap as they run through a lush, green forest.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Fortescue Metals Group Limited (ASX: FMG) share price is having a good day’s trade on the ASX for no obvious reason.

In fact, the spot price of the company’s major commodity, iron ore, is flat at US$93.40.

At the time of writing, the Fortescue Metals share price is $15.95, 1.24% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is up 0.33% right now. The All Ordinaries Index (ASX: XAO) is also up, having gained 0.4%.

Let’s take a look at what’s going on with this ASX mining share today.

What’s driving the Fortescue share price?

While the Fortescue share price’s gains are unexplained, it isn’t alone in having a good day on the ASX.

Many of the company’s peers are in the green, boosting the S&P/ASX 200 Materials Index (ASX: XJM) higher in early trade.

Incitec Pivot Ltd (ASX: IPL) is one of the sector’s winners today. It’s posting a 5% gain on the back of its full-year results.

Meanwhile, Fortescue’s fellow iron ore giants aren’t fairing so well.

Right now, the BHP Group Ltd (ASX: BHP) share price is down 0.89%. Rio Tinto Limited (ASX: RIO) shares aren’t doing much better, showcasing a 0.55% tumble.

There’s been no news to explain Fortescue’s gains today. However, the company’s chair did appear in the media yesterday.

Fortescue chair Andrew ‘Twiggy’ Forrest was interviewed by Sydney Morning Herald columnist and author Peter FitzSimons on Thursday. The resulting conversation was published yesterday.

The interview focused on Fortescue’s moves toward producing green energy and hydrogen power in Australia.

FitzSimons’ interview (and Forrest’s condemnation of Australia’s diesel fuel rebate) was quickly critiqued by Australian Financial Review columnist Joe Aston.

Perhaps, the media attention might have shifted the market’s focus back onto Fortescue Metals’ green ambitions – expected to be realised through its subsidiary, Fortescue Future Industries.

Right now, the Fortescue Metals share price is 11% higher than it was this time last month. However, it’s still 32% lower than it was at the start of 2021.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Materials Shares

Man with rocket wings which have flames coming out of them.
Share Gainers

Here’s why the 5E Advanced Materials share price just rocketed 20%

Why is this materials share lifting today?

Read more »

Man with rocket wings which have flames coming out of them.
Materials Shares

Magnis share price rockets 36% on New York lithium battery plan

Investors are responding positively to news out today from the lithium battery company.

Read more »

a man with a moustache sits at his computer with his hands over his eyes making a gap between his fingers so he can peek through to his computer screen.
Materials Shares

Lake Resources share price finally slumps after jumping 72% this week

The ASX 200 lithium stock's eye-watering green streak has come to an end.

Read more »

A woman gives two fist pumps with a big smile as she learns of her windfall, sitting at her desk.
Materials Shares

Why is the Vulcan Energy share price up 8%?

Positive developments in the lithium sector are likely pushing Vulcan shares higher today.

Read more »

asx share price increase represented by golden dollar sign rocketing out from white domes of lithium
Materials Shares

Why is the Core Lithium share price rocketing 5% today?

Is this 'driving' the Core Lithium share price today?

Read more »

Miner holding cash which represents dividends.
Dividend Investing

Do any ASX lithium shares pay dividends?

These three lithium shares offer regular payouts to investors.

Read more »

A man wearing a shirt, tie and hard hat sits in an office and marks dates in his diary.
Dividend Investing

Why is the Rio Tinto share price sinking today?

Why is this mining giant deep in the red today?

Read more »

Female miner uses mobile phone at mine site
Materials Shares

Why is the Global Lithium share price rocketing 13% on Wednesday?

A record find at the company's Manna Project has got the market in a spin.

Read more »