The Fortescue Metals Group Ltd (ASX: FMG) share price is sliding against the ASX 200 today.
Fortescue shares are down 0.31% and are currently trading at $20.725. However, in earlier trade, Fortescue shares fell nearly 2% to $20.41. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 0.2% today.
So what is going on with the Fortescue share price today?
Iron ore price
Fortescue is not the only ASX 200 iron ore explorer in the red today. BHP Group Ltd (ASX: BHP) shares are sliding 1.07%, while Rio Tinto Ltd (ASX: RIO) shares are slipping 1.38%.
Fortescue shares appear to be falling today amid a drop in the iron ore price in the US overnight.
In a research report today, ANZ economist Madeline Dunk said:
Base metals edged lower as the weak economic backdrop weighed on sentiment.
The iron ore price slid nearly 5% in global markets overnight amid a warning on China's property market from Goldman Sachs, Bloomberg reported.
This follows Citi analysts raising concerns about steel demand in China and cutting its iron ore prediction to US$100 a tonne in the third quarter.
Citi believes iron ore could drop to US$90 a tonne in the last three months of calendar year 2023, the publication noted.
Commenting on the iron ore outlook, China Industrial Futures Co analyst Wei Ying said: "We noticed some bulls are exiting", adding:
…the iron ore market will be in a slight surplus in the second half and we expect inventories at Chinese ports to increase.
ANZ strategists also have a US$95 a tonne forecast on the iron ore price.
However, iron ore futures for the contract month of July are currently up 0.67% to US$109.60 a tonne on the Singapore Exchange.
Fortescue share price snapshot
Fortescue has a market cap of about $63.8 billion based on the latest share price.
