Here’s why the Fortescue share price is surging on Monday

Higher iron ore prices have likely helped boost Fortescue’s stock today.

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Key points

  • The Fortescue Metals share price is more than 3% higher today, trading at $20.80
  • It comes after iron ore futures surged amid news out of China on Friday
  • The iron ore giant's stock is helping boost the ASX 200 materials index to outperform all other sectors on Monday

The Fortescue Metals Group Limited (ASX: FMG) share price is among the S&P/ASX 200 Index (ASX: XJO)’s top performers on Monday despite no news from the company.

The iron ore giant’s stock looks to be enjoying a boost from the commodity’s rising price.

At the time of writing, the Fortescue share price is $20.80, 3.23% higher than its previous close.

For context, the ASX 200 is up just 0.08% right now.

Let’s take a look at what might be helping bolster the ASX materials giant on Monday.

What’s boosting the Fortescue share price today?

The Fortescue share price is outperforming today. Its gains come after iron ore futures surged 2.5% to US$134.36 a tonne on Friday.

The steel-making ingredient’s value rose amid news China cut its benchmark reference rate for mortgages, according to CommSec.

And Fortescue’s stock isn’t alone in the green on Monday. The S&P/ASX 200 Materials Index (ASX: XMJ) is the index’s best performing sector today. It has gained 1.2% at the time of writing.

Fortescue is leading the sector’s rise. Meanwhile, shares in Champion Iron Ltd (ASX: CIA) and James Hardie Industries (ASX: JHX) are hot on its tail, having lifted 2.4% and 2.22% respectively.

At the same time, the share prices of fellow iron ore giants Rio Tinto Limited (ASX: RIO) and BHP Group Ltd (ASX: BHP) are recording gains of 2.22% and 1.82% respectively.

The Fortescue share price has outperformed the ASX 200 to gain 8.38% over the course of 2022 so far. Though it has slipped around 6% since this time last year.

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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