Fortescue warned it may cut its annual production guidance if it fails to finalize a sales agreement with China Mineral Resources Group (CMRG) by the end of the calendar year.
The world’s fourth-largest iron ore producer maintained its fiscal 2027 shipment forecast at 197 million to 207 million tons for now, but said the outlook depends on securing the deal.
Shipments outpaced sales by 3.9 million tons in the September quarter, leading Fortescue to stockpile ore. Executives said the company is resisting pressure to accept unfavorable pricing terms that could set a negative precedent for Australia’s iron ore industry.
The uncertainty sent Fortescue shares to their lowest level since June 2025.