The Fortescue Metals Group Ltd (ASX: FMG) share price is having a top run in the month of June.
Fortescue shares have risen 16% from $19.22 at market close on 31 May to $22.33 at the time of writing. In comparison, the S&P/ASX 200 (ASX: XJO) has climbed 1.7% in the same time frame.
So why is Fortescue having such a good month?
Image source: Getty Images
What's the deal?
Fortescue is a huge iron ore producer also working on green energy projects including hydrogen.
A rise in the iron ore price may be providing Fortescue shares with a boost this month.
The iron ore price has soared 16.5% from US$100 per tonne at market close on 31 May to US$116.50 a tonne at the time of writing, trading economics data shows.
Iron ore imports to China rose 6.34% month on month and 3.95% year on year to 96.17 million in the month of May, trade data released in early June showed.
In a research report, ANZ Group Holdings Ltd (ASX: ANZ) senior commodity strategist Daniel Hynes said, "Iron ore imports saw a surprise increase to 96 million tonnes despite narrowing steel mill profitability". He added:
Declining port inventories encouraged more shipments. Steel mill utilisation rates are improving, with a rebound in daily steel output.
Despite a downbeat steel-demand outlook, iron ore imports are likely to be resilient due to
recent destocking by mills.
Early in June, Fortescue announced the hire of Christine Morris as chief financial officer. Fortescue CEO Fiona Hick said, "During this critical time of growth and development, Christine will help lead the business to our next phase".
Commenting on her new role, Morris said:
My focus will be on continuing to provide exceptional value for Fortescue shareholders and
maintaining and growing the strength of our iron ore and emerging critical minerals business
Fortescue share price snapshot
The Fortescue share price has returned nearly 14% in the last year.
Fortescue has a market capitalisation of about $68.75 billion based on the latest share price.
