China is demanding a thorough analysis of a new shipment of iron ore from Fortescue

China Mineral Resources Group is seeking to strengthen its position in negotiations over iron ore trade

The Chinese state-owned company China Mineral Resources Group Co. (CMRG) has instructed certain steel mills that consume significant volumes of raw materials from Australia’s Fortescue to approach the supplier with inquiries regarding its new low-grade product, Fortune Fines (with a 55% iron content). This was reported by Bloomberg.

The reason for this move is that negotiations between Fortescue and CMRG regarding a long-term supply contract have reached an impasse, despite expectations that they would proceed smoothly. This step is yet another attempt by CMRG to strengthen its position in negotiations regarding iron ore trade with the world’s largest mining corporations.

It is worth noting that in April, another industrial giant, BHP Group, finally reached an agreement with CMRG after months of stalemate. The agreement will remain in effect until June 2027 and provides for the use of certain price indices denominated in yuan.

Bloomberg sources note that disputes over quality and marketing are quite common when new iron ore products are brought to market. However, against the backdrop of this news, Fortescue shares fell 3.1%, hitting a low of 21.82 Australian dollars on Tuesday.

Disagreements over Fortune Fines ore could complicate reaching a final agreement. At the same time, the parties’ current short-term agreements may be extended for the duration of the negotiations.

Fortescue, the world’s fourth-largest iron ore producer, has been actively seeking to strengthen its position in China this year. The company has expanded the presence of its senior management in the country and emphasized the importance of investing in the region. Despite this, Fortescue CEO Andrew Forrest criticized CMRG’s actions, warning that the group is effectively attempting to create a “cartel.”

It is worth noting that China had previously been gradually tightening restrictions on BHP shipments amid a contractual dispute. Specifically, on March 12, 2026, CMRG expanded the ban on Newman fines. A week earlier, traders were ordered to reduce purchases of new shipments of this grade, as well as lump ore and Mac fines (although the directive allowed the purchase of raw materials already in ports). In addition, in September of last year, the purchase of Jimblebar ore was banned, and in November, products under the Jinbao brand.