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

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

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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.

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