Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

The Fortescue (ASX: FMG) Share Price Sunk Today

The Fortescue Metals Group Ltd (ASX: FMG) share price fell almost 7% today.

Why?

The price difference between premium iron ore (65% fines) and lower grade (58% fines) is at the lowest level in more than two years on the back of supply concerns, so why are Fortescue shares falling?

Vale SA To Close A Mine Or Re-Open A Mine?

This week, a local court in Brazil ordered the world’s largest iron ore producer, Vale SA, to stop production at its Timbopeba mine over safety concerns, following on from the Brumadinho dam accident on 25 January which left more than 300 people dead. The Timbopeba mine has an estimated production of 13 million tonnes per annum (mtpa).

However, Vale said a local court in Brazil had given it permission to resume its operations at the Brucutu mine, which has an estimated capacity of about 30mtpa of iron ore, or around 8% of Vale’s annual output. Meaning, some iron ore production was removed from the global market, but more was added.

Efficient Market In Action

The Fortescue share price reached a two year high yesterday, reflecting the news that Vale’s Timbopeba mine would be shut. However, on Wednesday, Fortescue’s share price movement seems to have reflected the news from Brazil on Tuesday (overnight Australian time) of Vale being set to re-open a different mine.

Go figure!

This only serves to remind me of how cyclical and volatile mining shares like Fortescue can be. I’d rather look to other industries for investment growth.

[ls_content_block id=”14947″ para=”paragraphs”]

Disclaimer: At the time of writing, Andrew does not own shares in any of the companies mentioned.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content