What’s going wrong for the Fortescue share price on Thursday?

Three Argosy miners stand together at a mine site studying documents with equipment in the backgroundThree Argosy miners stand together at a mine site studying documents with equipment in the background

The Fortescue Metals Group Limited (ASX: FMG) share price is suffering on Thursday.

Interestingly, it’s joined in the red by its fellow S&P/ASX 200 Index (ASX: XJO) iron ore giants despite the price of the steel making commodity lifting overnight.

At the time of writing, the Fortescue share price is $17.60, 1.68% lower than its previous close.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.11% while the S&P/ASX 200 Materials Index (ASX: XMJ) is slipping 0.77%.

So, what could be going wrong for ASX 200 iron ore goliaths today? Let’s take a look.

What’s weighing on the Fortescue share price today?

The Fortescue share price is in the red today alongside those of BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO). They’re each down between 1.6% and 2.8% right now.

And while some of Rio Tinto’s downfall could be to do with a near-$1 billion tax settlement, the heavy weights’ suffering doesn’t have an obvious explanation.

Particularly, as iron ore futures lifted 0.9% overnight to reach US$104.01 a tonne.

One reason behind today’s tumble could be profit taking. The materials sector leapt 2.5% yesterday with the Fortescue share price among its leaders. The stock rose 5.23% on Wednesday.

Additionally, it could be impacted by reports of China’s new national iron ore company. A new entity, dubbed China Mineral Resources Group, has been set up to snap up iron ore to supply Chinese steel producers, reports ABC News.

The news could birth concerns that a body charged with consolidating iron ore purchases could force down iron ore prices.

However, the publication reports insiders are unconcerned for now. Indeed, Fortescue boss Andrew ‘Twiggy’ Forrest brushed off concerns of a ‘Chinese ore cartel’ last month.

The post What’s going wrong for the Fortescue share price on Thursday? 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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