Fortescue Warns of Output Guidance Cut If China Talks Aren't Concluded Soon
By David Winning
SYDNEY--Fortescue signaled it could cut annual production guidance if negotiations with China's centralized agency for iron-ore purchases aren't concluded by the end of December.
Fortescue attributed a gap between its iron ore sales in the three months through September and shipments of the steelmaking commodity to ongoing talks with China Mineral Resources Group.
Fortescue confirmed it shipped 46.8 million metric tons of iron ore in its fiscal first quarter, but sold only 42.9 million tons during the same period.
Still, it held guidance steady for shipments, C1 unit costs and capital expenditure for the 12 months through June when updating investors on its operational performance. That outlook hinges on a deal with CMRG.
"If negotiations with CMRG are not concluded by calendar year-end, operations may be affected, potentially including adjustments to production," Fortescue said on Thursday.
Fortescue currently expects to ship between 197 million and 207 million tons of iron ore in fiscal 2027, including up to 14 million tons from the Iron Bridge operation.
Write to David Winning at david.winning@wsj.com
(END) Dow Jones Newswires
October 21, 2026 18:23 ET (22:23 GMT)
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