Fortescue (ASX:FMG) has been hit with additional restrictions from China Mineral Resources Group, the state-backed iron ore buyer that negotiates with global miners on behalf of the Chinese government, Bloomberg reported Friday, citing anonymous sources familiar with the matter.
China Mineral Resources earlier set a July 15 deadline for steelmakers and traders to take delivery of portside Super Special Fines product from Fortescue. It has now told a number of domestic steel mills not to buy any new, US dollar-denominated consignments of Super Special Fines, according to the report.
The reported development comes amid an impasse in price talks between Fortescue and China over long-term supply deals.
Fortescue declined to comment on the matter in response to a query from. The company's shares gained nearly 2% in recent Monday trade after hitting a year-to-date low on Friday.
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