Why is the Fortescue share price sinking 6% on Monday?

How is the Fortescue share price performing today?

| More on:
Female worker sitting desk with head in hand and looking fed up

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

Key points

  • Fortescue shares are down more than 6% today 
  • Singapore iron ore futures have plunged nearly 7% 
  • Fortescue is a major iron ore producer on the ASX 

The Fortescue Metals (ASX: FMG) share price is tumbling today amid a tough trading day for ASX iron ore shares.

Fortescue shares are currently swapping hands at $19.57, a 6.05% fall. For perspective, the S&P/ASX 200 Index is 1.37% in the red today.

With no price-sensitive news released by the miner today, let's take a look at what else might be impacting the Fortescue share price.

Iron ore futures plunge

Fortescue shares may be down, but it is not the only mining share on the ASX to plunge. The S&P/ASX 200 RESOURCES Index (ASX: XJR) is down 1.86% today.

Meanwhile, BHP Group Ltd (ASX: BHP) shares are falling 1.13% and Rio Tinto Limited (ASX: RIO) shares are 2.62% in the red. Hawsons Iron Ltd (ASX: HIO) shares are plummeting more than 18%.

Overseas, Singapore iron ore futures dropped 6.7% to US$128.75, The Australian reported.

China's benchmark iron ore future on the Dalian Commodity Exchange also plunged 5.1% in late trade on Friday to 825 yuan per tonne, according to a Reuters report. China's 'zero-COVID-19' policy is reportedly causing traders to be more cautious.

This follows a positive month in April which saw the Fortescue share price climb 4.7%. Investors reacted positively to the company's third-quarter update on 28 April.

The company reported a 10% jump in shipments to 46.5 million tonnes in the first three months of the year.

Fortescue share price snapshot

Despite a slide of nearly 15% over the past 12 months, the Fortescue share price has lifted almost 2% year to date.

In comparison, the benchmark S&P/ASX 200 Index has returned 0.37% over the past year.

Fortescue has a market capitalisation of more than $60 billion based on its share price today.

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 Scott Phillips.

More on Resources Shares

Two excited mining workers in yellow high vis vests and hardhats shake hands to congratulate each other on a mineral discovery
Resources Shares

ASX mining stocks are up 9% in August. Experts name 2 to buy and 1 to sell

ASX mining shares have been surging, with the S&P/ASX 300 Metal & Mining Index rising 9% this month alone.

Read more »

a sad looking engineer or miner wearing a high visibility jacket and a hard hat stands alone with his head bowed and hand to his forehead as he speaks on a mobile telephone out front of what appears to be an on site work shed.
Earnings Results

Why is this roaring ASX 200 mining stock diving 8% today?

Torrid day for shareholders. But why?

Read more »

One hundred dollar notes blowing in the wind, representing dividend windfall.
Resources Shares

Everything you need to know about the BHP dividend

The mining giant has declared how large its upcoming dividend will be.

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain.
Earnings Results

BHP share price rises despite 26% profit plummet and dividend cut

BHP shares are in focus today after the mining giant delivered its FY25 result.

Read more »

Man holding out $50 and $100 notes in his hands, symbolising ex dividend.
Resources Shares

Is the Fortescue share price a buy for passive income?

Should investors still be interested in Fortescue for dividends?

Read more »

A group of miners in hard hats sitting in a mine chatting on a break as ASX coal shares perform well today
Resources Shares

Materials shares dominate for a second week amid another record high for the ASX 200

The big ASX 200 mining shares experienced strong gains amid a strengthened iron ore price.

Read more »

Investor holds a bull and a bear in each hand.
Opinions

Up 20% in a month, should you buy or sell Fortescue shares?

Fortescue shares have risen by almost 20% in just 4 weeks. Should you take profits or stay the course?

Read more »

Female miner standing next to a haul truck in a large mining operation.
Resources Shares

Why this expert is all in on Fortescue shares

A leading fund manager is bullish on the outlook for Fortescue shares. But why?

Read more »