Fortescue sold 3.9 million fewer tonnes of iron ore than it shipped in July-September, largely because state-owned buyer China Mineral Resources Group (CMRG) has blocked access to the company’s Chinese port-side inventories.
Fortescue shipped 47 million tonnes of ore out of Australia over the quarter, down 5.8% on the year, the company told investors on 22 October. But it sold 43 million tonnes of ore over that period because of ongoing commercial negotiations with CMRG, the company said.
“If negotiations with CMRG are not concluded by the end of 2026, Fortescue’s operations may be affected,” the company added.
CMRG blocked access to Fortescue products held at Chinese ports during negotiations in early July. Chinese buyers are not allowed to lift any Fortescue-branded port-side cargoes, a trader told Lithos on 22 October. Fortescue is not making Chinese port-side ore sales because of the restrictions, they said.
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.
CMRG’s Chinese port restrictions pushed up the locally traded price of Fortescue’s lower-grade Super Special Fines (SSF) ore in July. They are also impacting the price of other lower-grade ore products in China, according to market participants.
Traders have consistently sold SSF ore for over 800 CNY/tonne (A$171/tonne) since early August, higher than at any point since at least 2022, Lithos understands. SSF ore traded at approximately 1300 CNY/tonne over the week to October 18.
CMRG’s move against Fortescue came 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. Since then, it has negotiated industry-wide purchasing terms with multiple global producers.
By Avinash Govind