The Fortescue Metals Group Ltd (ASX: FMG) share price is in the green today.
The mining giant's share price is up 2.35% and currently fetching $16.75. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 1.67% at the time of writing.
Let's examine why the Fortescue share price is having such a good run today.
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Iron ore prices lift
Fortescue is not the only ASX iron ore share rising today. BHP Group Ltd (ASX: BHP) shares is currently trading 2.78% higher today, while Rio Tinto Limited (ASX: RIO) shares are up 1.67%.
This follows the iron ore price climb in global markets on Friday. In a research note, ANZ head of economics David Plank said:
Iron ore futures edged higher on Friday, although this wasn't enough to offset losses earlier in the week. Sentiment remains bearish as worries mount over the outlook for steel demand.
We expect steel demand in China to fall 3.5% this year, with only a marginal gain in 2023. This should keep iron ore prices under pressure.
The iron ore November futures contract is currently up 1.79% on the Singapore Exchange.
Meanwhile, Goldman Sachs analysts have recently reaffirmed a sell rating on Fortescue shares with a $13.40 price target. Analysts are predicting Fortescue's capital expenditure to increase. Goldman said:
Overall, we forecast FMG's capex to increase from ~US$3.2bn in FY23 to ~US$4bn by FY26 on mine and haul truck replacement and decarbonisation spend, but see upside risk to our estimate.
However, as my Foolish colleague Tristan noted recently, Fortescue is making progress on its green hydrogen projects. He predicts this could bode well for the Fortescue share price in the future.
Share price snapshot
Fortescue shares have risen 18% in the past 12 months, while they are down 12% year to date.
In comparison, the S&P/ASX 200 (ASX: XJO) has fallen 8% in the past year.
Fortescue has a market capitalisation of about $52 billion based on the current share price.
