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Fortescue pivots towards China sourcing as iron ore tensions reshape trade

Written by Isaac FrancisPublished Jan. 22 2026Last Updated Jan. 22 2026

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Fortescue is increasingly reshaping its commercial relationship with China, deepening ties with buyers and suppliers as Beijing tightens its grip over iron ore pricing and market structure.

The miner shipped a record 100.2 million tonnes in the six months to December, with 87.4% of revenue generated from Chinese customers.

Shares traded 5% lower at $21.48, as investors balanced strong volumes against concerns over pricing power.

“We believe in a free capital market system, which in many cases having aggregated buying groups, it somewhat flies in the face of that,” said Fortescue mining chief Dino Otranto.

Fortescue has broadened its procurement from China to include electric trucks from XCMG, batteries, solar panels and wind equipment, while also securing a $3 billion yuan-denominated loan, signalling a strategic shift toward a more integrated bilateral supply chain.

Management says this approach has helped protect sales volumes even as China’s state-backed buying agency seeks to exert greater influence over benchmark pricing.

“We need to think much differently now about our relationship with China,” said Fortescue mining chief Dino Otranto.

RBC analysts said Fortescue and Rio Tinto were still achieving comparatively favourable pricing relative to BHP in recent shipments.

Rising stockpiles at Chinese ports, however, continue to give Beijing added leverage in negotiations with exporters.
Fortescue is also under pressure to lift output at Iron Bridge, which shipped 4.3 million tonnes of magnetite concentrate in the half but remains below expectations.

Beyond iron ore, the group is pursuing longer-term growth through projects including Baniaka in Gabon and the proposed Canariaco copper acquisition in Peru.