The Fortescue Metals Group Ltd (ASX: FMG) share price is up just 0.1% in afternoon trade, rebounding from earlier intraday losses of 1.2%.
Shares in the S&P/ASX 200 Index (ASX: XJO) iron ore miner closed yesterday trading for $20.23 and are currently swapping hands for $20.25 apiece.
The Fortescue share price is almost static despite a fractional uptick in iron ore prices overnight, currently trading for US$110 per tonne. That's up some 34% since 1 November when the industrial metal was trading for US$82 per tonne.
What are ASX 200 investors considering?
The Fortescue share price appears to be floundering today for two reasons.
First, JP Morgan downgraded a range of iron ore miners. Fortescue was among those, with its rating cut to underweight from neutral.
JP Morgan analyst Lyndon Fagan explained (as quoted by The Australian):
China reopening, whilst a clear positive for the space, now looks to be priced into many stocks already. China's reopening appears to be a reality, but sentiment-wise, it's also the consensus thinking.
Fatigue on this trade for the miners could start to set in soon, given strong recent performance. Many stocks have overshot on the upside, and the market could pivot back to global recession concerns in early 2023 or begin to worry about an interrupted / less aggressive China reopening.
The Fortescue share price is likely also facing some headwinds because the China reopening isn't going exactly to plan.
COVID infections are soaring in the Middle Kingdom's major cities, including Beijing.
With infections surging, officials have delayed this week's Central Economic Work Conference, which was due to take place in Beijing. No future date for the highly watched conference has yet been released.
This comes as the year just gone looks to have seen China's economy grow at the slowest pace since the 1970s. According to Bloomberg's economist survey, the Chinese economy is forecast to grow only 3.2%.
Fortescue share price snapshot
As you can see in the chart below, the Fortescue share price has outperformed over the past 12 months, gaining 8%.
Longer term, Fortescue shares are up 314% in five years.
