It has been a cracking week for ASX-listed hydrogen shares, with some companies providing returns north of 30% this week alone.

Shares in the alternative energy source regained momentum on Monday after Fortescue Future Industries announced plans to construct a hydrogen electrolyser manufacturing centre in Gladstone. However, investors may be wondering if there is substance to the emerging industry.

Thankfully, Capgemini released its 23rd edition of the World Energy Markets Observatory on Tuesday. Among a vast collection of insightful data, Capgemini shed some clarity on hydrogen’s future in the energy market.

Demand for alternatives

Before we get to how hydrogen might help Australia reach its net-zero targets, let’s evaluate the current energy landscape in the land down under.

According to Capgemini, Australia’s total electricity generation in 2020 was 265.2 terawatt-hours. Putting this into perspective, that is approximately the energy consumption of 47.9 million homes. Additionally, the report indicates almost a quarter of all this electricity was generated from renewable sources.

While that might seem substantial, the research suggests a further 5 to 10-fold increase in investments of low carbon technologies per year will be needed to meet Paris Accord objectives. Such an outlook appears positive for ASX hydrogen shares and the like. At a minimum, it indicates a sustainably larger market for green alternatives.

Commenting on this, group vice-president energy and utility sector Philippe Vié stated:

In this year’s World Energy Markets Observatory, we see the need to maintain energy affordability while accelerating energy transition efforts. Emerging technologies and new use cases across the energy value chain, including green hydrogen, CCUS, storage, and e-mobility, will play a critical role in helping the world achieve a net-zero future.

ASX hydrogen shares with a part to play

So, what part could ASX hydrogen shares play in this net-zero future? Based on Capgemini’s findings, green hydrogen has the potential to decarbonise an additional 15% of the world economy. That makes for an incredibly large addressable market.

However, to unlock such market potential, the costs of the emissions-free benefactor will need to decline. At present, green hydrogen will drain the pocket at $3 to $6.55 per kilogram. Meanwhile, fossil-based ‘grey’ hydrogen is a much cheaper $1.80 per kilogram. Luckily, Capgemini expects costs for the green alternative to reduce if/when the price of electrolysers shifts lower.

Speaking of electrolysers, one ASX-listed company getting involved in the production of this equipment is Fortescue Metals Group Limited (ASX: FMG). Specifically, the green-focused subsidiary Fortescue Future Industries (FFI), which today announced a joint venture with US-based hydrogen solutions provider, Plug Power Inc (NASDAQ: PLUG).

In addition to Fortescue, there is a whole swathe of smaller ASX hydrogen shares vying for a slice. These hydrogen compadres include Hazer Group Ltd (ASX: HZR) and Province Resources Ltd (ASX: PRL).

The post How fast is green hydrogen growing and which ASX shares could benefit? appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler 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 Bruce Jackson.

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The Sandfire Resources Ltd (ASX: SFR) share price has surged over the last 2 days after it announced the sale of its interest in Adriatic Metals Plc (ASX: ADT).

The sale of Sandfire’s 16% holding in Adriatic Metals brought in $97 million of aggregate proceeds.

The news sent the Sandfire share price 4% higher yesterday and it is still rising today.

At the time of writing, the Sandfire share price is $6.06. That’s 7.7% higher than it was at yesterday’s close and 12.2% higher than it was at Wednesday’s close.

Unfortunately, as The Motley Fool Australia reported yesterday, it hasn’t been such a pretty picture for Adriatic Metals.

The company didn’t see a scrap of the profits. Additionally, it had 16% of its capital sold at a 15.9% discount to its closing price on 12 October.

Let’s take a closer look at the most recent news from Sandfire Resources.

Sandfire share price soars amid investment sale

The Sandfire Resources share price is gaining for the second day in a row after it announced that it had sold around 34.6 million Adriatic Metals CHESS depository interests.

The CHESS depository interests represented ordinary shares. Sandfire sold each interest for $2.80.

The company appointed Canaccord Genuity Limited, RBC Europe Limited, and Stifel Nicolaus Europe Limited to be the sale’s bookrunners.

The sale was made to institutional investors and opened before the ASX did on Wednesday. It was finished before trade began on Thursday and is expected to be settled on 18 October.

Sandfire’s managing director and CEO Karl Simich, commented on the sale boosting the company’s share price this week, saying:

This has been an excellent investment for Sandfire. However, given that our focus is firmly now on the MATSA operation in Spain, which we see as the backbone of our company moving forward, together with our exciting development and growth assets in the Kalahari Copper Belt, our holding in Adriatic is no longer a strategic asset for the company.

The post Why has the Sandfire Resources (ASX:SFR) share price rallied 12% in 2 days? appeared first on The Motley Fool Australia.

More reading

• Adriatic Metals (ASX:ADT) share price plunges 16% on Sandfire update
• Why Adriatic Metals, Platinum, Redbubble, & Whitehaven Coal are dropping
• Why is the Adriatic Metals (ASX:ADT) share price halted?
• Sandfire Resources (ASX:SFR) share price fizzles after sale of Adriatic Metals stake
• Why has the Adriatic Metals (ASX:ADT) share price leapt 11% in a month?

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 Bruce Jackson.

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The Dimerix Ltd (ASX: DXB) share price is gaining more field position in afternoon trade and is now changing hands at 28.5 cents.

That’s an approximate 4% gain for the biopharmaceutical company today after it released a key update regarding its CLARITY 2.0 clinical trial regarding COVID-19.

Here are the details.

Dimerix Phase 3 COVID-19 study to expand into Australia

Dimerix advised that it has entered into an agreement with the NHMRC Clinical Trials Centre at the University of Sydney to expand its CLARITY 2.0 study.

It’s not uncommon to see large studies be conducted across different jurisdictions, as it enables a wider testing sample for more robust outcomes.

For instance, researchers can gauge results across a number of demographics, ethnicities, age groups, and locations in various countries to understand any inter-human variables in how a drug might work.

Dimerix’s seamless feasibility/phase 3 clinical trial, which is examining the effect of the company’s DMX-200 drug candidate in COVID-19 patients with respiratory complications, will commence recruitment of 600 patients across six sites in NSW, VIC and QLD upon regulatory approval.

Currently, the study is “already approved and open for recruitment in India”, and is being led by Professor Meg Jardine, Director of the NHMRC Clinical Trials Centre.

If successful, the company claims that DMX-200 “would likely be effective against the different Covid-19 strain mutations based on its mechanism of action”.

As border restrictions begin to ease and lockdown mandates begin to wind back in the coming months, active COVID-19 cases and hospitalisations are expected to rise, as has been the case in other countries when doing so.

The release notes that “it is anticipated that a significant portion of the population will remain susceptible to Covid-19 because they are not vaccinated or do not get an adequate protective response from the vaccines”.

This, it claims, is a driving factor for the need for COVID-19 treatments – like DMX-200 – on top of vaccines within Australia.

What’s next for Dimerix?

To fund the Australian arm of the CLARITY 2.0 study, Dimerix’s balance sheet is the “strongest it has been in the company’s history” after it received $24 million from a recent share purchase and placement plan.

It will use this cash to finance the suite of clinical programs surrounding DMX-200 and progress the company’s other candidate program, DMX-700, towards development.

The former also includes a phase 3 trial for a rare kidney disorder known as FSGS, whilst the DMX-700 program is centred on chronic obstructive pulmonary disorder (COPD).

Today’s gains are a welcomed reprieve for shareholders, having endured a 5% loss over the month in their Dimerix holdings.

Dimerix share price snapshot

The Dimerix share price has climbed 21% this year to date, ahead of many of its biopharmaceutical peers.

Despite this, it has only gained 5.5% in the past 12 months, well behind the S&P/ASX 200 index (ASX: XJO)’s return of around 18% in that time.

The post Dimerix (ASX:DXB) share price jumps on COVID study update appeared first on The Motley Fool Australia.

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The author Zach Bristow has no positions 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 Bruce Jackson.

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The ARB Corporation Limited (ASX: ARB) share price is finishing the week in a very positive fashion.

In afternoon trade, the 4×4 parts manufacturer’s shares are up 6% to $50.68.

Why is the ARB share price charging higher?

The catalyst for the rise in the ARB share price today appears to have been a broker note out of Citi this morning.

That note was in response to the company’s annual general meeting update on Thursday which revealed that FY 2022 has started positively.

The company advised: “Pandemic induced restrictions during the first quarter of FY2022 impacted ARB in a number of its markets, including significant lockdowns in Victoria and New South Wales. Despite these restrictions, trading performance remained strong during the quarter with pleasing sales and profit growth.”

“ARB’s order book remains strong, both domestically and internationally, and the Company is continuing with its product development work, store development program in Australia and the expansion of its manufacturing capability,” it added.

What did Citi say?

In response to the update, the team at Citi upgraded the company’s shares to a buy rating with a $55.45 price target.

Based on the current ARB share price, this implies potential upside of 9.4% for investors even after today’s strong gain.

Citi commented: “The 1Q22 trading update revealed better profit momentum despite lockdowns in NSW and Victoria. We upgrade ARB to Buy (from Neutral) following the -11% share price decline since its August 2021 peak as we see potential for sales and profit to accelerate over 2Q22e with NSW and Victoria reopening.”

“ARB also has significant medium-term growth drivers including i) its partnership with Ford, ii) distribution gain opportunities in the US, iii) opportunities to expand in Europe and iv) expansion of its Thailand manufacturing facility,” it added.

The ARB share price may now be up 63% in 2021, but Citi appears to believe it could run even higher.

The post ARB (ASX:ARB) share price charges 6% higher on broker upgrade appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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 recommended ARB Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Westpac Banking Corp (ASX: WBC) share price could find itself under the comfortable spotlight if it gets hit by legal action for its vaccination policy.

The second largest ASX bank has become the latest S&P/ASX 200 Index (Index:^AXJO) company to make it mandatory for all staff to get the COVID-19 jab.

Westpac’s staff in NSW, Victoria and the ACT will need to be fully vaccinated by December 1 or risk losing their jobs. Employees in other states will be required to be fully vaccinated by February 1, 2022, reported the according to the Australian Broadcasting Corporation.

Westpac is first of the big banks to mandate COVID vaccination

The Commonwealth Bank of Australia (ASX: CBA) said that it will start consultation with its staff about implementing its vaccination policy.

The other two big banks, Australia and New Zealand Banking GrpLtd (ASX: ANZ) and National Australia Bank Ltd. (ASX: NAB) have yet to announce their vaccination policy.

But ASX banks aren’t the first to move on this front. Other large ASX shares have already announced similar policies for their staff. This includes the Telstra Corporation Ltd (ASX: TLS) share price and BHP Group Ltd (ASX: BHP) share price.

Westpac facing legal challenge risk to vaccination policy

The no-jab no-job mandate has angered some in the community. They argue that their rights are being infringed by such a draconian measure.

You only need to look at the angry protests by those working in construction to see evidence of this. Workers across several industries are threatening to challenge companies’ vaccine mandate in court.

But Westpac believes the vast majority of its staff will back its decision. The bank’s internal survey of 10,000 staff found that 91% have or intend to get vaccinated while 4% are undecided.

Of course, it only takes one anti-vaxxer to take legal action and spoil the party. Westpac has 76,000 staff.

Loophole for anti-vaxxers to exploit

Legal experts agree that such court actions are unlikely to succeed. There is legal backing for employers to require their staff to be vaccinated.

However, this also depends on the nature of their job. There could be a loophole if anti-vaxxers can show they can socially distance on the job and take over measures to stop the spread.

Legal standing yet to be tested

“With a large workforce, it is important that we have the safest possible work environment,” Westpac CEO Peter King said in a statement.

“Since the NSW outbreak started in June, more than 3,800 of our employees have been required to isolate and more than 280 branches have closed and re-opened, both significantly disrupting operations.

It remains to be seen if Westpac, or any other ASX company, will have their conviction bested in court.

The post Legal risk just increased for the Westpac (ASX:WBC) share price appeared first on The Motley Fool Australia.

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Motley Fool contributor Brendon Lau owns shares of Australia & New Zealand Banking Group Limited, BHP Billiton Limited, Commonwealth Bank of Australia, National Australia Bank Limited, Telstra Corporation Limited, and Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Netwealth Group Ltd (ASX: NWL) share price has risen by around 25% in the past week.

Considering its market capitalisation was already in the billions, that is a significant increase in a short amount of time.

On 14 October 2021, the business released its quarterly business update and outlook for the three months to September 2021.

Netwealth quarterly update

Netwealth said that funds under administration (FUA) at 30 September 2021 was $52 billion. That was an increase of $4.8 billion (a 10.2% increase) for the last quarter, including market movements of $0.8 billion. Year on year, the increase was $17.9 billion (an increase of 52.7%), including a positive market movement of $6 billion.

The FUA net inflows for the September quarter were $4 billion, which was 111% more than the prior corresponding period. Of the total FUA, net inflows from two clients contributed approximately $0.9 billion. The rest of the inflows were “well diversified”.

Turning to funds under management (FUM), it reached $12.6 billion at 30 September 2021, which was a 7.7% increase (or $0.9 billion) for the quarter and an increase of 56.9% year on year ($4.6 billion in dollars).

FUM net inflows were $0.9 billion for the quarter, including $0.7 billion of managed account net inflows.

The managed account balance was $10.7 billion at 30 September 2021, an increase of 63.6% year on year.

The Netwealth share price has risen almost 20% since this announcement.

How fast is it growing compared to the competition?

Netwealth said that it continued to lead the industry for FUA net inflows, as reported in the ‘Plan for Life’ quarter platform market update. It recorded the largest FUA net inflows of $9.8 billion for the 12 months to 30 June 2021.

At 30 June 2021, its market share increased to 4.9%. That was an increase of 1% over the prior 12 months.

It is the sixth largest platform, behind IOOF Holdings Limited (ASX: IFL), Westpac Banking Corp (ASX: WBC) / BT, AMP Limited (ASX: AMP), Commonwealth Bank of Australia (ASX: CBA) / Colonial and Macquarie Group Ltd (ASX: MQG). It’s also growing at a faster pace than Hub24 Ltd (ASX: HUB).

Outlook

The outlook may be factoring into investor’s thoughts about the Netwealth share price.

It said:

The ongoing structural changes within the financial services industry continue to support and increase Netwealth’s addressable market and growth opportunities.

As a result of these changes our pipeline for new business remains very strong across all market segments.

The business upgraded its FUA net inflow guidance for FY22 from $10 billion to approximately $12.5 billion. That was due to the record net inflows from the last quarter and the growth that is in its “substantial” new business pipeline.

The post Here’s why the Netwealth (ASX:NWL) share price has surged 25% this week appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX shares today
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• ASX 200 (ASX:XJO) midday update: HUB24 & Netwealth impress, A2 Milk surges again
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Hub24 Ltd and Netwealth. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and Netwealth. The Motley Fool Australia has recommended Hub24 Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) is having another relatively pleasant day on the ASX boards this Friday. At the time of writing, the ASX 200 is up a healthy 0.53% so far to 7,351 points. But let’s delve a little deeper and check out the ASX 200 shares that are topping the volume charts so far this Friday, according to investing.com.

3 most active ASX 200 shares by volume today

South32 Ltd (ASX: S32)

This diversified ASX 200 mining company is our first share to check out today. This Friday has seen 8.89 million S32 shares swap owners so far. There has been no major news or announcements out of the company to explain why it might be the third-most traded ASX 200 share so far today.

The South32 share price has had something of a wild day today so far. The company is presently down 0.26% at $3.82 a share. However, earlier today, it initially rose as high as $3.99 a share before settling back to its current level. it might be this volatility that is behind South32’s elevated trading volume today.

Pilbara Minerals Ltd (ASX: PLS)

Pilbara Minerals is our second ASX 200 share today. This lithium producer has seen a sizeable 12.1 million of its shares bought and sold so far this Friday. Like with South32, there is a dearth of any price-sensitive news or announcements out of Pilbara, at least for now. That’s aside from the release of its annual general meeting letter to shareholders.

However, the Pilbara share price has also had a volatile time today. This company has bounced around between $2.03 and $2.10 a share all day today, despite the fact it is currently sitting at $2.08 a share, up by 0.49%. It’s this volatility that is likely behind so many Pilbara shares trading today.

Platinum Asset Management Ltd (ASX: PTM)

Our final; and most traded ASX 200 share today is a rare guest appearance on this list (unlike South32 or Pilbara). Platinum has seen a hefty 14.41 million shares change hands thus far today. This high volume of shares appears to be a byproduct of the nasty fall the Platinum share price has taken this Friday. This fund manager is presently down 6.7% to $3 a share.

This could be in response to the notice the company put out this morning, announcing that one of its directors, Tim Trumper, will be stepping down after the company’s annual general meeting next month. But Platinum shares have been under pressure all week, ever since the company’s disappointing September funds under management announcement. This steep fall is probably behind Platinum’s elevated trading volume today.

The post These 3 ASX 200 shares are topping the volume charts this Friday appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Sebastian Bowen 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 Bruce Jackson.

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The Xero Limited (ASX: XRO) share price has returned to form this week and has been charging higher.

The cloud accounting platform provider’s shares are currently up almost 4% since last Friday’s close at $144.52.

Could the Xero share price keep rising to $165.00 by the end of 2021?

What happens between now and the end of 2021 for the Xero share price will depend a lot on its half year results next month, but one leading broker appears to see potential for its shares to reach $165.00 in the near future.

According to a recent note out of Goldman Sachs, its analysts have a buy rating and $165.00 price target.

Based on the current Xero share price, this implies potential upside of 14% for investors.

Why is Goldman positive on Xero?

Most recently the broker has been looking at an update from one of its key rivals and saw a number of positives. That rival is Intuit, which is the company behind the QuickBooks accounting platform.

Goldman notes that QuickBooks grew its international subscribers by 11% or ~160k in FY 2021 and US subscribers by 18%. The former was notably slower than Xero’s growth, which the broker feels bodes well for its global expansion.

It commented: “While we acknowledge the y/e timing impacts between Intuit/Xero, this subscriber performance was significantly below vs. Xero (+412k ex. NA). Therefore, we see this update as a strong positive for Xero in its global traction, noting a key pillar of our positive thesis is the ability to leverage its best in class product to expand in new geographies (NZ$18bn Cloud Accounting Expansion TAM).”

Another positive was Intuit’s update on the QuickBooks ecosystem. Goldman has previously stated how it believes Xero has a massive opportunity to monetise its own app ecosystem, so takes comfort from Intuit’s update.

It explained: “In FY21 40% of QBO customers use an ecosystem service or 3rd party app (vs. 36% in FY20) with the company generating a much higher share of platform revenues (i.e. Payroll, Time tracking etc., with Online Services c.38% of FY21 QBO revenues) vs. Xero (7% of FY21 revenues ex Hubdoc).”

Overall, the broker was happy with what it heard and remains very positive on the Xero share price.

It concluded: “We re-iterate our Buy on Xero (12m TP of A$165), noting Xero has closed its premium vs. the ASX InfoTech index to 140% vs. 2 year average 179% (12mf EV/Sales), and is -27% cheaper on 12mf EV/Sales vs. key peer WTC. We expect revenue acceleration into FY22 to drive outperformance (+4% vs. VA Consensus) with significant LT opportunities to unlock further value (NZ$76bn TAM).”

The post Could the Xero (ASX:XRO) share price reach $165 by the end of 2021? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Xero. The Motley Fool Australia owns shares of and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The ASX banking scene here in Australia is a little more complicated than it may initially seem. Whilst we ASX investors love to discuss the big 4 ASX banks, there appear to be dozens of banking brands throughout the country that might make us forget about the old ‘four pillars’ policy.

Four pillars was the brainchild of former treasurer and prime minister Paul Keating, and was designed to ensure that the largest 4 banks in Australia would never be allowed to merge or consolidate further.

That’s all well and good, you might think, but there are far more than 4 banks in Australia…

Well, there may not be as many as you might think.

4 pillars, but 20 lenders?

Most of the big 4 ASX banks house banking brands outside their own. Many investors over a certain age might remember the blockbuster merger of Westpac Banking Corp (ASX: WBC) with St. George Bank way back in 2008.

You might think St George is its own bank today, going off of its separate branding, advertising campaigns and branches. But it is in fact still a complete subsidiary of Westpac. As are Bank of Melbourne and BankSA, mind you. Westpac also owns the wealth manager BT, as well as the home loan provider Rams.

Likewise, Commonwealth Bank of Australia (ASX: CBA) also owns Bankwest, as well as stakes in Colonial First State and Aussie Home Loans. 

National Australia Bank Ltd (ASX: NAB) owns the online-only brand Ubank, as well as the recently acquired neobank 86 400.

Australia and New Zealand Banking Group Ltd (ASX: ANZ) is the only big four bank that seems to just stick with its main branding house.

But what of the other ASX banks outside the big four? Specifically Bendigo and Adelaide Banking Group Ltd (ASX: BEN)?

What other banks do Bendigo and Adelaide Bank shareholders own?

Well, it turns out Bendigo Bank is well as truly on the ‘divide and conquer’ train. According to this bank’s website, it owns both the Bendigo Bank and Adelaide Bank names (duh). But in addition to these flagship brands, this company also houses Rural Bank, Community Bank, DelphiBank and Alliance Bank. It also recently acquired the neobank Up.

In addition to these banking brands, Bendigo and Adelaide Bank also owns wealth manager Sandhurst Trustees.

So if you own Bendigo and Adelaide Bank shares, you really own a lot more than just those two names. Something to keep in mind for all banking investors today!

At Bendigo and Adelaide Bank’s last share price of $9.44 (at the time of writing), this ASX bank has a market capitalisation of $5.29 billion and a dividend yield of 5.79%.

The post Own Bendigo Bank (ASX:BEN) shares? Then you also own these 5 other banks appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bendigo and Adelaide Bank Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Fortescue Metals Group Limited (ASX: FMG) share price is climbing today after a choppy week for iron ore miners.

At the time of writing, the Fortescue share price is 1.68% higher at $14.56.

Mixed signals for China’s steel industry

China’s energy restrictions for industrial use, which weighed on the steel industry in late September, have been easing in some areas in October. This has allowed steel mills to gradually resume production since the beginning of the month, mill sources and traders told S&P Global Platts.

Despite the potential good news for iron ore markets and subsequently Fortescue shares, sources in the regions said most steelmakers were not expected to ramp-up to full capacity to ensure 2021 crude steel output remains near 2020 levels.

Traders also told S&P Global construction steel demand in September and October turned out to be weaker than expected. Any signs of recovery in the fourth quarter were expected to be limited by a slowdown in the property sector.

Some flat steel traders went as far as saying demand from the manufacturing sector has been battered by a double whammy of power rationing and surging commodity prices.

Iron ore prices are also sending mixed signals for the Fortescue share price.

Spot prices edged higher overnight on Thursday with prices up US$1.74 or 1.4% to US$125.91 a tonne.

Prices rose slightly amid active trading activity in the spot market and at Chinese ports, sources told Fastmarkets.

China’s most active futures contracts for January 2022 delivery on the Dalian Commodity Exchange are currently trading 0.8% lower at approximately 725 yuan (US$112.7) a tonne.

Fortescue shares find support at $14

The Fortescue share price is down 41% year-to-date and sitting around 15-month lows. It is also down around 12% over the past 12 months.

Its free-fall has stabilised in recent weeks, consolidating around the mid $14 level.

The post Own Fortescue (ASX:FMG) shares? Here’s the latest on China’s steel demand appeared first on The Motley Fool Australia.

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Motley Fool contributor Kerry Sun 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 Bruce Jackson.

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