Fortescue share price dives another 3%, down 12% in a week

We check what’s weighing on the miner’s performance this week.

| More on:
a man wearing a hard hat stands in front of heavy mining machinery with a serious look on his face.

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

  • The Fortescue Metals share price is trading lower Tuesday, falling 6% to $18.45 at its intraday low
  • Its dip comes after iron ore futures dumped 4.7% overnight
  • The Fortescue share price is joined in the red by that of Rio Tinto and BHP

The Fortescue Metals Group Ltd (ASX: FMG) share price is in the red for a second consecutive day, adding to its recent downturn.

Today’s move comes after iron ore futures slumped another 4.7% overnight, reaching US$133.99 a tonne, according to CommSec.

At the time of writing, the Fortescue share price is $18.99, 3.26% lower than its previous close.

Earlier today the iron ore giant’s stock reached an intraday low of $18.45, representing a 6% tumble.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently down 1.45%. Its slip follows another disastrous session on US markets.

Fortescue share price slips again on Tuesday

The Fortescue share price is continuing to suffer on Tuesday, bringing its losses for the last seven days to 11.7%.

Its fall follows that of the price of iron ore. Prior to Monday’s open, iron ore futures dropped 4.7% to US$138.44 per tonne.

The commodity’s fall might be due to concerns continued COVID-19 lockdowns in China could impact global demand for steel.

China is the world’s largest importer of iron ore and lockdowns in the nation have previously cast doubt over the commodity’s value.

Restrictions on movement in Shanghai have been tightened once more despite case numbers falling, ABC News reported on Tuesday.

Fortescue CEO Elizabeth Gaines told the Australian Financial Review last month that lockdowns in China hadn’t negatively impacted demand for iron ore.

The Fortescue share price isn’t the only ASX iron ore giant to be trading lower today. Those of BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) are down 2.47% and 3.85% respectively.

Meanwhile, the S&P/ASX 200 Resources Index (ASX: XJR) is recording a 2.82% dip.

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 Scott Phillips.

More on Resources Shares

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Resources Shares

Here’s what led the Mineral Resources share price to sink 25% in June?

Minerals Resources shares have struggled to regain composure.

Read more »

a group of three men in hard hats and high visibility vests stand together at a mine site while one points and the others look on with piles of dirt and mining equipment in the background.
Materials Shares

Why are these ASX 200 mining shares behind the eight ball today?

The ASX 200 is up, but not all shares are in the green.

Read more »

Upset man in hard hat puts hand over face after Armada Metals share price sinks
Resources Shares

Why did the BHP share price have such a lousy FY22?

Although it paid big dividends during FY22, BHP’s total returns were negative.

Read more »

Broker holding red flag in front of bear
Resources Shares

South32 crashes into bear market in June as recession fears bite

The miner and metals producer has had a challenging month.

Read more »

Three business people stand on platforms in the desert and look out through telescopes.
Resources Shares

What is the outlook for the Rio Tinto share price in July?

Can this be the start of a recovery for the mining giant?

Read more »

a man wearing a hard hat and a high visibility vest stands with his arms crossed in front of heavy equipment at a mine site.
Broker Notes

Should investors dig the Fortescue share price in July?

Fortescue is suffering in the sell-off. Will things get better in July?

Read more »

An engineer takes a break on a staircase and looks out over a huge open pit coal mine as the sun rises in the background
Resources Shares

Why did the Rio Tinto share price plunge 11% in June?

Let's analyse the month just gone by.

Read more »

Young boy with glasses in a suit sits at a chair and reads a newspaper.
Resources Shares

How did the Fortescue share price perform in June?

The iron ore producer's shares have been experiencing a rough patch of late.

Read more »