MELBOURNE: China’s state iron ore buyer has asked some domestic steel mills not to take delivery of certain portside iron ore products from Fortescue, industry sources said, the latest Australian miner to fall foul of Beijing’s push to increase control over the market.
China Mineral Resources Group (CMRG) notified some mills verbally that from July 15 they must not take delivery of portside cargoes of Fortescue’s Super Special Fines and Fortune Fines, both of which are lower-grade iron ore products, five sources with knowledge of the matter said. Fortescue declined to comment. Shares of Fortescue were flat at 12:57 GMT on Thursday, even as peers BHP and Rio Tinto fell more than 1percent.
The move escalates CMRG’s campaign to assert control over how iron ore enters the Chinese market, following a months-long standoff with BHP that ended in April. Fortescue ships most of its iron ore to China and is still negotiating supply terms with CMRG. All sources sought anonymity given the sensitivity of the matter.
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