Fortescue logs lower iron ore prices; warns of protracted volatility

Fortescue reported record iron ore shipments rose in July-September, the first quarter of the 2022 financial year, but the price it achieved for lower grade ore fell against benchmark prices, which are down by half from record highs posted in May.

Steel demand has been hurt by concerns arising from a debt crisis in the Chinese property market alongside Beijing’s stricter emissions controls. [IRONORE/]

Chief Executive Elizabeth Gaines told a media call there was no single factor behind iron ore price volatility but that next year’s Winter Olympics could result in volatility to come.

The Beijing Games will be held from Feb. 4 to Feb. 20, with the Paralympics following from March 4 to March 13.

During past events that have put Beijing under a global spotlight, authorities have curtailed steel-making in the surrounding industrial areas in order to ease air pollution in the capital.

“We are all aware there is a general determination from Beijing to ensure blue skies and ... expectations are that we could continue to see some continued volatility as a result,” she said, adding that long term customer contracts had not been impacted.