The sources said that CMRG verbally informed some factories that, starting on July 15, they should not accept shipments of Super Special Fines and Fortune Fines, as low-grade iron ore products supplied by Fortescue. Fortescue declined to comment on the matter. While the company's shares were broadly unchanged, shares of Australian mining companies BHP and Rio Tinto fell by more than one percent during trading.
The restrictions were introduced against the background of ongoing negotiations
The move follows CMRG's broader campaign to centralize iron ore purchases in China.Earlier this year, the state-owned buyer concluded negotiations with BHP after a months-long dispute, after which restrictions on several BHP products were lifted.Fortescue, which supplies most of its iron ore to China, is still negotiating terms of supply with CMRG. According to one trader, Fortescue's super special fines reserves at major Chinese ports totaled 7.22 million tons as of June 30, representing almost five percent of the port's total iron ore reserves, based on calculations using Steelhome data.
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