The Fortescue Metals Group Limited (ASX: FMG) share price has been under pressure this past month. Shares in the Aussie iron miner have fallen more than 20% since 26 July amid a broader iron ore slump.
Until this month, 2021 had been pretty good for iron ore prices. In fact, the key commodity price hit as high as US$229.50 per tonne on 12 May. There was a price slump through to late May before a recovery followed.
The Fortescue share price tracked iron ore prices lower throughout May and similarly recovered to $26.30 per share by late July.
However, iron ore prices have been plummeting since. From 16 July to 23 August, the value of iron ore has fallen from US$217.2 per tonne to US$132.6 per tonne. That’s a decline of 39% in the space of just 5 weeks.
