Why is the Fortescue Metals (ASX:FMG) share price sliding 5% today?

What is impacting the Fortescue share price today?

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Key points

  • The Fortescue Metals share price is in the red nearly 5% today 
  • Global iron ore prices have plunged amid China COVID lockdowns 
  • Fortescue exported more than 93.1 million tonnes of iron ore in the first half of FY22

The Fortescue Metals Group Ltd (ASX: FMG) share price is well in the red on the ASX today.

The company's shares are currently swapping hands at $17.125, a 5.07% fall. In comparison, the  S&P/ASX 200 Index (ASX: XJO) is down 0.56% at the time of writing.

Let's take a look at what could be impacting the Fortescue share price.

Iron ore prices

Iron ore prices appear to be impacting the Fortescue share price today. Fortescue exported more than 93.1 million tonnes of iron ore in H1 FY22.

However, global iron ore prices have plunged recently amid resurgent COVID-19 lockdowns in China, according to a report on NAB trade. A climb in infections is raising concerns about China's projected economic growth, the report stated.

Iron ore's top traded May contract on the Dalian Commodity Exchange dropped 7% to 759.50 yuan (AU$166.43) a tonne, the Australian Financial Review reported. The iron ore April contract on the Singapore Exchange also fell 8.8% to $US143.80 per tonne. This is a two week low.

At the same time, the share price of fellow ASX miner Rio Tinto Ltd (ASX: RIO) is down more than 4% at the time of writing, currently trading at $106.66. BHP Group Ltd (ASX: BHP) shares are also down more than 4%.

In other news, Fortescue founder Andrew 'Twiggy' Forrest met with Egypt's Prime Minister on Monday. As my Foolish colleague Tristan reported, the meeting explored potential green hydrogen opportunities.

Fortescue on the ASX recap

The Fortescue share price has lost 16% in the past year. It's fallen 24% in the past month alone, shedding 10.6% year to date.

Meanwhile, the benchmark ASX index has returned nearly 5% over the past 12 months.

Fortescue has a market capitalisation of about $53 billion based on its current share price.

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.

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