The Fortescue Metals Group Limited (ASX: FMG) share price hit a new 52-week high of $23.33 in early afternoon trading.

There is no price-sensitive news out of Fortescue today, however, it’s likely that Goldman Sachs’ prediction of a 20% bump to the iron ore price is playing a role in the ASX mining giant’s leap.

In addition, S&P/ASX 200 Materials (ASX: XMJ) is the best performer among the 11 market sectors today, up 0.6% compared to the benchmark S&P/ASX 200 Index (ASX: XJO) which is down 0.25%.

On top of all that, Fortescue shares might be looking more attractive than BHP Group Ltd (ASX: BHP) shares after the Big Australian released its 1H FY23 results, revealing a consensus earnings miss of 7.5%.

Not only that, but BHP also cut its dividend by 40%, which has likely disappointed income investors.

Fellow ASX mining share Mineral Resources Ltd (ASX: MIN) is also up today by 3.9% to $85.04.

The Rio Tinto Limited (ASX: RIO) share price is also in the green, up 1.1% to $126.50.

BHP shares are down 0.75% to $48.10 apiece.

Goldman Sachs tips iron ore price rise to US$150 per tonne

As my Foolish colleague Tristan reported this morning, Goldman has a three-month iron ore price target of US$150 per tonne and a six-month target of US$135 per tonne.

That means the iron ore price could rise by almost 20% over the next three months.

The iron ore price increased overnight by 0.39% to US$127.50 per tonne, according to Trading Economics.

It’s down 2.67% year-over-year, and well off its all-time high of more than US$210 per tonne reached in June 2021. (No wonder the mining companies are paying reduced dividends in FY23 compared to FY22.)

Goldman says the iron ore price could rise because of an impending supply/demand imbalance.

This would be due to a seasonal boost in Chinese steel production during March and April and a “near-term” supply squeeze at the same time.

Changes in the iron ore price have a very direct effect on the Fortescue share price because the company is a pure play among the ASX iron ore shares.

Case in point: Both the iron ore price and the Fortescue share price have risen 3.66% over the past month.

The Fortescue share price is currently $23.26, up 2.97% at the time of writing.

The post Why has the Fortescue share price hit a new 52-week high today? appeared first on The Motley Fool Australia.

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More reading

• Goldman tips 20% surge in iron ore price. Should I buy ASX 200 mining shares?
• Passive income watch: 3 ASX 200 shares that slashed their dividends this week
• Should I buy Fortescue shares following the ASX 200 miner’s latest results?
• Here’s what you need to know about the latest Fortescue dividend
• Fortescue share price sinks amid 13% dividend cut

Motley Fool contributor Bronwyn Allen has positions in BHP Group and Fortescue Metals Group. 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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