Fortescue share price lifts with Australia’s record high trade surplus

The Fortescue Metals Group Limited (ASX: FMG) share price is in the green today. Its rise came as data outlining a record trade surplus of nearly $16 billion – driven by coal and iron ore – hit headlines.

The Fortescue share price is trading 3.58% higher at $17.07 at the time of writing.

In comparison, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.65% while the S&P/ASX 200 Materials Index (ASX: XMJ) has gained 2.16%.

Let’s take a closer look at today’s news from the Australian Bureau of Statistics (ABS).

Fortescue share price lifts on Thursday

The Fortescue share price lifted today after the ABS released data outlining a notable jump in metal ores and minerals exports in May.

Approximately $14.5 million worth of metal ores and minerals were exported from Australia in May – a 2.8% month-on-month increase.

That helped boost Australia’s total trade surplus to $15.965 billion in May – more than 20% higher than that of April. In that time, exports rose 9.5% while imports lifted close to 6%.

However, it was coal that was the major driver of the country’s record trade surplus. The export value of the black rock saw a 20% month-on-month increase – coming in at more than $14.6 million in May.

Today’s Fortescue share price’s gain also follows a poor session for its major commodity’s value. The iron ore futures price fell 1% overnight to reach US$112.33 a tonne.

And the future could bring more downfalls for the price of iron ore. Commonwealth Bank of Australia (ASX: CBA) senior economist Belinda Allen was quoted by the Australian Financial Review as saying:

We expect China to reduce steel output later this year, similar to what occurred in 2021. As a result, we expect further falls in the price of iron ore from here.

Other ASX 200 iron ore giants are also in the green on Thursday. The share prices of BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) are trading 2.78% and 3.93% higher respectively.

The post Fortescue share price lifts with Australia’s record high trade surplus 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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