Fortescue share price strengthens amid boost in China’s iron ore appetite in August

The Fortescue Metals Group Ltd (ASX: FMG) share price is on the rise today.

The mining giant’s shares are currently trading at $16.74 each, a 4.63% gain.

Let’s take a look at what could be impacting the Fortescue share price today.

Iron ore demand lifts

Fortescue is a global iron ore producer based in Western Australia, supplying iron ore to China.

China’s iron ore imports increased 5.44% to 96.2 million tonnes in August, an ANZ research report released today shows. However, they are down 1.32% compared to the same time last year.

Authors Daniel Hynes and Soni Kumari said:

Iron ore imports were also higher than July levels as mills tentatively restocked ahead of the construction season.

The data showed coal, copper, iron ore, and natural gas imports also lifted in August. The report’s authors said China’s commodity imports are improving, but they also referred to the impact of China’s lockdowns, saying:

[China’s] zero-COVID strategy is creating headwinds and has kept demand below last year’s levels for many markets. Stronger growth is unlikely until these issues are resolved.

In FY22, Fortescue produced a record 189 million tonnes of iron ore for shipment around the world. The company reported a net profit after tax (NPAT) of US$6.2 billion and declared a fully franked final dividend of $1.21 per share.

Fortescue shares went ex-dividend on Monday 5 September with the dividend to be paid on 29 September.

Meantime, the iron ore price is currently down 1.01%, fetching US$98.5 per tonne, Trading Economics data shows.

Share price snapshot

The Fortescue share price is down around 7% in the past year, losing almost 13% year to date.

Fortescue has a market capitalisation of about $51 billion based on the current share price.

The post Fortescue share price strengthens amid boost in China’s iron ore appetite in August appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 mining shares getting blasted on Wednesday?
• The Fortescue share price has cratered 13% in a week. What’s going on?
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• Can you buy shares in Fortescue Future Industries?
• Why Adairs, Fortescue, PointsBet, and Qantas shares are dropping

Motley Fool contributor Monica O’Shea 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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