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

How is the Fortescue share price performing today?

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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.

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