FORTESCUE has warned its prolonged pricing dispute with China’s state-backed iron ore buyer could hit full-year profit if talks are not resolved by year-end, Bloomberg reported.
The Australian miner said operations could be affected if negotiations with China Mineral Resources Group (CMRG) drag into 2027. Fortescue is currently selling under short-term agreements after months of talks over contract pricing.
Iron ore shipments fell 6% year on year in the September quarter, while sales dropped to 42.9 million tons. Realised prices were 10% lower.
Fortescue sold none of its West Pilbara Fines product during the quarter, while sales of King Fines and Fortescue Blend also declined.
CEO Dino Otranto told analysts the company could have another 5 million tons of unsold iron ore in coming months.
He said management was focused on preserving cash and did not want to accept a price cut that could set a precedent for the broader industry.
Fortescue shares fell as much as 4.6% on Thursday to their lowest level since June 2025. The stock is down about 36% from its May peak.
CMRG was established in 2022 to consolidate iron ore purchases by Chinese steelmakers and strengthen their bargaining power with major suppliers.
It has become increasingly assertive in pricing negotiations with miners including Fortescue and BHP.
China remains critical to Fortescue, accounting for 89% of its revenue in the year to June 2026. The miner has also been exploring alternative markets including India and Southeast Asia.