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The Fortescue Metals Group Limited (ASX: FMG) stock price rose and fell like a yo-yo on Tuesday.
Fortescue shares closed at $17.07 today, up 0.95% from yesterday’s close. For perspective, S&P/ASX 200 Indicator (ASX: XJO) is up 1.72% today.
Let’s see what happened to Fortescue’s share price today.
Fortescue shares rose 1.3% to $17.12 in early trading. However, the company’s shares fell into the red after lunch before recovering to end the day in the black.
Fortescue is among the world’s largest iron ore manufacturers.
The price of iron ore down 1.55% per night up to USD 95 per ton, Economics of trade the data show. This is the lowest level since November 2021.
The commodity was close to US$160 per tonne in March and close to US$230 per tonne in May 2021.
Iron ore prices struggled overnight amid China news is planned to be supported your strategy zero from COVID-19. This is expected to further restrain the country’s economic growth. China is the largest importer of iron ore in the world.
Also today there was news that the iron ore giant Vale S.A (NYSE: VALE) is produced more iron ore than analysts expected last quarter. Vale produced 89.7 million metric tons of crude, ahead of expectations, Bloomberg informed. This may put more pressure on the price of iron ore, the publication notes.
Meanwhile, fellow iron ore producer Rio Tinto posted mixed results production results for the third quarter today.
Iron ore production jumped 1% to 83.4 million tons, while iron ore shipments fell 1% year-on-year to 82.9 million tons. Analysts there were tips 84.5 million tons of iron ore supplies, my stupid colleague James noted today.
Rio noted that commodity prices “continued to trend downward” during the quarter, stressing that “there are additional downside risks.”
Singapore Stock Exchange Iron ore futures contract for November is 0.17% in the red at the time of writing.
Stock price snapshot
Fortescue shares have risen almost 16% over the past year, but have fallen 11% since the start of the year.
For perspective, the ASX 200 has shed 8% in the past year.
Fortescue has a market capitalization $52.5 billion based on the current stock price.