The Fortescue Metals Group Ltd (ASX: FMG) share price is in the red for a second consecutive day, adding to its recent downturn.
Today’s move comes after iron ore futures slumped another 4.7% overnight, reaching US$133.99 a tonne, according to CommSec.
At the time of writing, the Fortescue share price is $18.99, 3.26% lower than its previous close.
Earlier today the iron ore giant’s stock reached an intraday low of $18.45, representing a 6% tumble.
Fortescue share price slips again on Tuesday
The Fortescue share price is continuing to suffer on Tuesday, bringing its losses for the last seven days to 11.7%.
Its fall follows that of the price of iron ore. Prior to Monday’s open, iron ore futures dropped 4.7% to US$138.44 per tonne.
The commodity’s fall might be due to concerns continued COVID-19 lockdowns in China could impact global demand for steel.
China is the world’s largest importer of iron ore and lockdowns in the nation have previously cast doubt over the commodity’s value.
Restrictions on movement in Shanghai have been tightened once more despite case numbers falling, ABC News reported on Tuesday.
Fortescue CEO Elizabeth Gaines told the Australian Financial Review last month that lockdowns in China hadn’t negatively impacted demand for iron ore.
Meanwhile, the S&P/ASX 200 Resources Index (ASX: XJR) is recording a 2.82% dip.
The post Fortescue share price dives another 3%, down 12% in a week appeared first on The Motley Fool Australia.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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