The Fortescue Metals Group Limited (ASX: FMG) share price fell over 7%, making it one of the worst falls in the ASX 200 (ASX: XJO). Over the past day the iron ore price has fallen about 1.9% in US dollar terms.
Some parts of China have gone into lockdown, with holidays being extended until at least a week into February. Obviously China is a huge source of demand for Australian iron ore, so if demand for iron falls then it could be bad news for companies like Fortescue.
Since the start of 23 January 2020 the Fortescue share price is actually down around 10%, though it’s still higher than it was on the 16 January 2020, so it’s not as though it has fallen that far yet.
Time will tell how much more the price and demand of iron ore will fall. The All Ordinaries (ASX: XAO) fell 1.45% on Tuesday and the Chinese stock exchanges in Shanghai & Shenzhen are now going to stay closed until at least 2 February 2020.
The post Fortescue Metals share price falls over 7% appeared first on Motley Fool Australia.
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