Sydney, June 24, 2026, 05:03 AEST
Fortescue Ltd (FMG:ASX) ended down 1.7% at A$19.27 on Tuesday, near its low for the session. Shares fell as weaker iron ore prices offset news of another move into low-emission shipping. The Australian market won’t trade until Wednesday.
Iron ore is still the key for Fortescue’s earnings, cash and dividends, so the commodity move is crucial. First-half profit at the company climbed 23% as shipments and prices picked up, showing the core business moves fast when iron ore prices shift.
S&P/ASX 200 slipped 0.3% to 8,787 for a fourth straight session in the red. The mining sub-index shed 1.5%. BHP Group lost 0.7%. “The stronger US dollar, driven by higher rate expectations, left the materials sector particularly exposed,” IG market analyst Tony Sycamore said. The Business Times
Singapore iron ore futures fell 0.6% to $97.65 a ton in Asian hours, hitting their lowest level in roughly four months. Traders cited worries about higher supply from Guinea’s Simandou project along with typically slow Chinese steel demand.
Mining stocks could keep struggling as the market factors in weaker global demand and a stronger U.S. dollar, Vantage senior market analyst Hebe Chen said. Australian mining shares have dropped in seven out of the last nine sessions.
Fortescue plans to charter up to 12 ammonia-capable Newcastlemax bulk ships from CMB.TECH’s Bocimar, the company said Monday. Each can carry 210,000 deadweight tonnes. Up to three ships will get dual-fuel ammonia engines and could start service by the end of 2026. “The shipping industry doesn’t need more talk. It needs action,” said Katie Charuga, Fortescue’s integrated operations director. Global
Fortescue said its fleet could cut carbon dioxide emissions by roughly 250,000 tonnes per year if it switches to green ammonia. The charter cost and length of the contract weren’t released, so investors don’t have enough detail yet to judge the short-term financial impact.
Fortescue is sticking to its fiscal 2026 shipment target of 195 million to 205 million tonnes, but trimmed its Iron Bridge forecast to 9 million–10 million tonnes after weather issues. The company shipped 48.4 million tonnes in the March quarter, up 5%, but just shy of what analysts were looking for. Operational delivery is still the main focus.
China brings more uncertainty. Earlier in June, China Mineral Resources Group asked some steelmakers not to talk with Fortescue about its planned Fortune Fines product, sources told Reuters. Term-contract talks were making little headway at the time. Fortescue said the talks are confidential and ongoing.
Fortescue said Tuesday that China president Alvin Liu has left the company, about four months into the job. Fortescue did not say why Liu exited and said it won’t replace him. The move comes as Fortescue depends on Chinese buyers, suppliers and partners for its iron ore and decarbonisation work.
Downside risk looks real. The price for 62%-grade iron ore is down around 8% over the past month. If it falls further, Fortescue could take a hit on realised prices, margins, and its ability to pay dividends. Simandou project delays or a rebound in Chinese steel demand might turn things around, but those are not certain.
Fortescue’s next update is set for July 31 with its June-quarter production report. Investors are watching for shipment numbers, Iron Bridge updates, cost detail, and whether it sticks with full-year guidance.
