Australian iron ore miner Fortescue Metals Group (FMG) recently signed 12 iron ore supply deals with Chinese steelmakers, totaling between $3-4bn.
According to a news release dated Nov 9, the miner reached these agreements with numerous steel groups on the sidelines of the China International Import Expo. The importers consisted of its long-term partner and shareholder, Hunan Valin, along with Guangxi Shenglong, Baotou, and Shaanxi, among various others.
As per FMG’s report, Chinese crude steel production has reached 782mn mt within the first nine months of 2020, with full-year production touted to reach 1bn mt. The country’s continued demand for steel, driven by state-led infrastructure and construction projects, has in turn, kept iron ore demand stable in recent months, post-recovery from the COVID-19 pandemic.
FMG’s chief executive officer, Elizabeth Gaines, said that these agreements solidified the miner’s longstanding position in the Chinese iron ore supply chain.