Fortescue Metals Shares Rally After Iron Ore Improves

Up 5% at time of writing, Fortescue Metals Group Ltd [ASX:FMG] has reacted well to improved iron ore prices.

Fortescue had earlier been under the pump as iron ore prices slumped.

Under the Pump

As seen below, from a high of $4.98 on 14 May 2018, Fortescue fell to $3.53 on 12 September 2018.


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This 29% drop happened as the US and China butted heads over tariffs.

Recently, the price of iron ore has been improving, surging to a six month high as shown below.

Iron Ore Surges


Speculation that the Chinese policymakers will pump money into their domestic market has driven this surge.

This would be a return to the policies which saw China achieve impressive growth until now.

Today, Fortescue has profited from this speculation.

At time of writing, it has shown a 13% change over the past week.

Fortescue Responds

fortescue metals

Ryan Clarkson-Ledward

PS: 2018 Mining Boom: Could these 10 cheap, top-quality Aussie mining stocks lead this year’s commodities comeback? Find out here.

Ryan Clarkson-Ledward is an Editor at Money Morning.

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