The Fortescue Metals Group Ltd (ASX: FMG) share price isn't flying higher alongside the rising iron price.
Iron ore jumped another 1% overnight to reach US$160 per tonne.
However, the Fortescue share price is down 0.1% at time of writing even as the S&P/ASX 200 Index (ASX: XJO) charges 0.6% higher.
Fortescue shares closed yesterday at $21.70 and are currently trading for $21.69.
Image source: Getty Images
What's happening in the markets?
Iron ore is still a fair way off its July 2021 highs of US$218 per tonne. But the industrial metal has charged higher from the US$120 per tonne it was trading for on 1 January this year.
Part of the price rise is due to the increasing likelihood that China, the world's biggest importer of iron ore, looks set to get a boost from government spending meant to stimulate the Chinese economy.
Russia's invasion of Ukraine has also put pressure on iron ore and steel markets. Russia and Ukraine together are responsible for some 4% of the world's annual iron ore production.
Why isn't the Fortescue share price responding today?
So, with iron ore prices rising again, why isn't the Fortescue share price responding today?
Part of that answer lies in the 26% gains Fortescue shares have posted since 15 March, when iron ore was trading for US$145 per tonne.
The other reason the Fortescue share price is lagging today lies with the risk-on moves in the global and local markets that's seeing investors snapping up high-growth tech shares.
Yesterday, overnight Aussie time, the tech-heavy Nasdaq gained 1.9%.
Down under today, materials are the worst performing sector, with the S&P/ASX 200 Materials Index (ASX: XMJ) down 0.28%. As for ASX tech shares, the S&P/ASX All Technology Index (ASX: XTX) is up 2.7% at time of writing.
Long-term investors shouldn't be fretting about the slight dip in the Fortescue share price today though. If you'd bought shares five years ago, you'd be sitting on gains of 255%.
