Fortescue’s Super Special Fines iron-ore stocks at China ports at five-week high, traders’ data shows
Stocks of Fortescue's Super Special Fines, a type of lower-grade iron-ore, held at Chinese ports have surged to a five-week high following a ban from Beijing on the brand, according to calculations based on data from two traders.
State iron-ore buyer China Mineral Resources Group, established in 2022 to assert more control over pricing in the iron ore market where China is the dominant buyer, has stepped up efforts to win better terms for the country’s steelmakers, amid dwindling demand and shrinking margins.
CMRG barred domestic steel mills and traders from taking delivery of Fortescue’s Super Special Fines accumulated at ports from mid-July as it was locked in talks with the Australian miner, the world’s fourth-largest iron-ore supplier, for a new year supply contract, Reuters reported last month.
Portside inventory of Fortescue’s Super Special Fines has climbed 27.9% since mid-July to a five-week high at 7.08 million tons as of August 11, according to Reuters calculations based on data from the traders.