Fortescue Looks to Markets Outside China as CMRG Pressure Mounts

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessFortescue Looks to Markets Outside China as CMRG Pressure MountsFortescue Ltd. said actions by China’s state-backed iron ore buyer were undermining the market, prompting the miner to explore alternative customers to reduce the impact of the dispute.Author of the article:Paul-Alain Hunt and Katharine Gemmell You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Fortescue Ltd. said actions by China’s state-backed iron ore buyer were undermining the market, prompting the miner to explore alternative customers to reduce the impact of the dispute.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an Account“We want just a fair market practice,” Gus Pichot, chief executive officer for growth and energy at Fortescue, said on a call with analysts Friday, adding that China Mineral Resources Group Co. was “undermining the stable supply of iron ore to China.”The standoff has become one of the clearest tests yet of Beijing’s push to gain greater leverage over iron ore trade through CMRG. Any prolonged disruption could reshape trade flows in a market where China buys about three-quarters of the world’s seaborne iron ore.China remained Fortescue’s largest market, but the company was continuing to sell through multiple channels while exploring additional demand in Southeast Asia and India, Pichot said.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe comments came days after Executive Chairman Andrew Forrest urged China to “always negotiate fairly” after CMRG stepped up pressure on the Australian miner following stalled talks over a supply agreement.CMRG has coordinated with traders, steel mills and port operators to delay Fortescue cargoes, limit purchases of some of its products and discourage new buying, Bloomberg previously reported.Ongoing pressure on Chinese steelmakers has been a key factor behind the dispute, according to Fortescue. A lingering property downturn, slowing steel demand and excess supply have squeezed mill margins.“The whole reason why we’re having this pressure with CMRG is because of the margin squeeze on mills,” Chief Executive Officer Dino Otranto said on the call.Fortescue shipped 52.7 million tons of iron ore in the three months ended June 30, bringing full-year exports to 201 million tons.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.