# Fortescue reports lower iron ore sales than shipments as buyer talks continue > Fortescue shipped 46.8 million tonnes in its first FY27 quarter, while sales were 3.9 million tonnes lower amid negotiations with China Mineral Resources Group. - Topic: Markets and commodities - Subjects: Ports and shipping, Commodity prices, Steel - Event date: 2026-10-22 - First published on EPC Feed: 2026-10-25T20:55:46.165Z - Updated: 2026-10-25T20:55:46.165Z - Countries: Australia - Page: https://epcfeed.com/news/fortescue-q1-shipments-below-sales-amid-cmrg-talks ## Key facts - Quarterly shipments: 46.8 million tonnes - Quarterly sales: 42.9 million tonnes - Hematite unit cost: US$21.98/wmt - Blacksmith maiden reserve: 196 million tonnes at 58% Fe Fortescue reported 46.8 million tonnes of iron ore shipments in the September 2026 quarter, including 2.5 million tonnes from Iron Bridge. Sales totalled 42.9 million tonnes, 3.9 million tonnes below shipments. In its 22 October production report, the company attributed the gap to ongoing negotiations with China Mineral Resources Group (CMRG), and said product inventory was expected to increase by a further four to five million tonnes during October as it worked to optimise placement channels. Fortescue warned that if negotiations were not concluded by calendar year-end, operations could be affected, potentially including production adjustments. The report also covered operating costs, maintenance and cash. Hematite C1 unit cost was US$21.98 per wet metric tonne, up 13% from the preceding quarter and 21% year on year. Fortescue said higher diesel prices had added about US$1.40 per tonne compared with the first quarter of FY26, alongside inflation and lower supply-chain volumes. The company completed a major planned port shutdown, replacing critical infrastructure including a tippler cell in Train Unloader 1 and components on a reclaimer and shiploader. Hematite realised US$79.79 per dry tonne, while Iron Bridge concentrate revenue was US$111.09 per dry tonne. At quarter end, Fortescue reported US$3.2 billion in cash and US$2.8 billion in net debt. Cash outflows included a US$1 billion final FY26 dividend and US$916 million in capital expenditure and investments. It kept FY27 shipment guidance at 197–207 million tonnes, including 11–14 million tonnes from Iron Bridge, and retained hematite C1 cost guidance of US$20.50–21.75 per wet tonne. The company expressly made that guidance subject to the CMRG negotiations. The report includes several project and technology milestones alongside the sales issue. Fortescue reported a maiden Blacksmith ore reserve of 196 million tonnes at an average iron grade of 58%, with the related resource estimate increased to 615 million tonnes. It said the reserve would help maintain production as existing mines mature. At Christmas Creek, the Green Metal Project produced its first hot metal during the quarter through its electric smelting process. Fortescue also said first turbine components had arrived for its 133 MW Nullagine Wind Project, and that 21 electric excavators were operating. The company reported first hot metal and equipment arrivals as project milestones; it did not claim commercial operation of a full green-iron facility or completed wind farm. Fortescue’s Iron Bridge profile identifies it as a magnetite operation in the Pilbara and describes it as part of the company’s move into a higher-grade product alongside its hematite business. The quarterly report’s 2.5 million tonnes from Iron Bridge is thus a product-specific component of the wider shipment total; the report does not attribute the CMRG talks to this operation alone. ## Sources 1. [September 2026 Quarterly Production Report](https://edge.sitecorecloud.io/fortescue17114-fortescueeb60-productionbbdb-8be5/media/project/fortescueportal/shared/documents/regulatory/asx-announcements/automated/03151489-september-2026-quarterly-production-report.pdf). Stock exchange filing, Fortescue Ltd, Published 2026-10-22, Read 2026-10-25. 2. [Iron Bridge](https://www.fortescue.com/what-we-do/our-operations/iron-bridge). Reference, Fortescue Ltd, Read 2026-10-25.