China moves to limit Fortescue iron ore sales
Sydney (3 July)
Chinese state-owned buyer China Mineral Resources Group (CMRG) has moved to limit access to some Fortescue-branded iron ore products held at Chinese ports over a commercial negotiation, according to market participants.
But iron ore markets have not reacted strongly to CMRG’s move because of limited visibility into negotiations between the state-owned buyer and Fortescue, a trader told Lithos on 2 July.
Fortescue sold 3.8 million tonnes of iron ore from its Chinese port-side stockpile in January-March – up 23% on the year – data from its March 2026 quarterly report show. The company’s Chinese port-side sales accounted for 7.9% of its total sales over the quarter.
Fortescue uses long-term sales contracts, port-side sales, and spot sales to support Chinese customers, the company said in its 2025 annual report. “China is the largest global importer of seaborne iron ore, making Fortescue’s business highly dependent on continuing demand from China’s steel industry,” it added.
But Fortescue is not alone. Chinese producers bought 83% of Australia’s iron ore exports in 2024, data from the Observatory of Economic Complexity (OEC) show. Iron ore exports to China accounted for 20% of Australia’s total exports in 2024, OEC data show.
CMRG’s move against Fortescue comes less than a year after it banned some BHP iron ore products for six months – from October 2025 to April 2026 – over a contract negotiation. Weeks after CMRG lifted its BHP product bans, the Australian producer agreed to change its ore pricing formula and offer shipping rebates to large Chinese buyers, Lithos understands.
The Chinese Government set up CMRG in 2022 to centralise iron ore purchases and support local steelmakers. It has negotiated industry-wide purchasing terms with global producers since then.
The Australian Government did not announce any steps to support BHP during its dispute with CMRG, but expressed concern about the ban. “In one respect, [ore bans are] a matter for [BHP] to work through, and I’ll have discussions with [BHP CEO] Mike Henry about that in due course,” Treasurer Jim Chalmers said on 1 October.
“[But] I want to see Australian iron ore be able to be exported into China without hindrance. That is important. It makes a major contribution to China’s economy, but also to Australia’s,” Australian Prime Minister Anthony Albanese added on the same day.
By Avinash Govind