What’s moving the Fortescue share price this week?

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.

The Fortescue Metals Group Limited (ASX: FMG) share price is up a slender 0.1% during the lunch hour on Friday.

At the time of writing, shares are changing hands for $23.08.

If the S&P/ASX 200 Index (ASX: XJO) iron ore miner can hold onto those gains, today will be the fourth straight day the Fortescue share price finishes in the green.

This follows a hefty loss on Monday to kick off the week.

What happened with the ASX 200 miner on Monday?

The Fortescue share price closed down 7.3% on Monday, finishing the day at $20.81.

Part of that loss stemmed from a slide in commodity prices over the weekend. This saw Rio Tinto Ltd (ASX: RIO) shares finish Monday down 2.9% while the BHP Group Ltd (ASX: BHP) share price fell 3%.

The Fortescue share price came under additional selling pressure on Monday as the stock traded ex-dividend on the day.

The miner reported its half-year results on 15 February, announcing a fully franked interim dividend of 75 cents per share, down 13% from the prior interim dividend.

On Monday, investors buying the stock were no longer entitled to that dividend, sending the share price lower. Investors who owned shares at Friday’s close can expect that dividend payment on 29 March.

Fortescue share price buoyed by green steel ambitions

The Fortescue share price marched higher for the rest of the week, currently up 11% since Monday’s close.

Part of that strength looks to be derived from the company’s industry-leading sustainability push via its subsidiary Fortescue Future Industries (FFI).

The miner’s ‘green steel’ initiative may have shielded it from some of the wider mining sector fallout on Tuesday following news that China’s government had ordered a cutback in steel production at Tangshan.

Chinese officials said the move was necessary to reduce air pollution.

Indeed, on Wednesday Fortescue boss Andrew Forrest pointed to the huge opportunities available to the company in the United States. That’s thanks to the US$437 billion worth of subsidies for new energy projects contained in the US Inflation Reduction Act (IRA).

Mark Hutchison, the head of FFI, jetted off to the US on Wednesday to discuss those opportunities with government and business leaders.

Fortescue share price snapshot

As you can see in the chart below, a big surge in the Fortescue share price since early November has helped send the ASX 200 miner’s shares up 19% over the past 12 months.

The post What’s moving the Fortescue share price this week? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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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