Australian miner Fortescue founder and executive chairman Andrew Forrest has called on Australia and China to “always negotiate fairly” as the world's fourth-largest iron ore producer continues annual iron ore supply negotiations with its largest customer, according to a report by Reuters.
Speaking at the Boao Forum Perth, Forrest said bilateral trade has supported Australian employment, businesses and public services while providing China with a secure and reliable iron ore supply that has underpinned its industrial growth. He added that Australia, China and Gabon, where Fortescue is expanding its iron ore operations, should continue to strengthen their partnership and “grow together.”
CMRG increases pressure during annual negotiations
The comments come as global iron ore producers face increasing pressure from China Mineral Resources Group (CMRG) during annual supply negotiations. CMRG has sought more favorable supply terms for Chinese steelmakers over the past year and has introduced measures including restricting Chinese steel mills from purchasing certain iron ore products while negotiations are ongoing.
Australia, the world's largest iron ore producer, accounts for around 53 percent of global iron ore supply. The country's iron ore export earnings are forecast to decline to A$108 billion in the 2026-27 financial year from A$117 billion in the previous year as global supply increases.
As SteelOrbis reported previously, CMRG informed Chinese steel mills in early July that, effective July 15, they should not take delivery of Fortescue's Super Special Fines (SSF) product held at Chinese ports while annual supply negotiations continue.
