SYDNEY, Jan 20, 2026, 17:07 AEDT — After-hours trading
Shares of Fortescue Ltd (FMG.AX) slipped 0.6% to A$22.26 on Tuesday, following a 1.9% drop the day before. The iron ore miner seemed to follow softer bulk commodity cues by the close. Prices fluctuated between A$22.07 and A$22.43, according to data. (Investing)
This shift is crucial since Fortescue’s profits track iron ore prices closely, while the market continues to gauge China’s steel and property sectors. Traders are also gearing up for new earnings reports due later this week.
Australian shares slipped, the S&P/ASX 200 falling 0.66% by Sydney’s close. Declines in materials, along with metals and mining sectors, weighed on the index. (Investing)
Iron ore futures hit two-week lows Monday after fresh data from China highlighted continued pressure in its property sector, a key steel-demand driver. The May contract on China’s Dalian Commodity Exchange closed down 2.58% at 794 yuan a tonne. Meanwhile, Singapore Exchange’s February benchmark fell 1.54% to $104.7 a tonne. (ETAuto.com)
China’s 2025 steel figures have deepened concerns on the demand side. Crude steel production dropped 4.4% from 2024, hitting 960.81 million metric tons—the lowest in seven years—even though steel exports climbed to a record high, surpassing 119 million tons, according to a Reuters report. (Reuters)
Supply concerns have resurfaced. China just got its first shipment of iron ore from Guinea’s Simandou mine, Reuters reported. Beijing has poured significant investment into Simandou as it looks to cut reliance on Australian and Brazilian shipments, which currently make up about 80% of its imports. The mine aims to produce 120 million tons annually and offers higher-grade ore at roughly 65% iron, the report added. (Reuters)
Broker sentiment on individual stocks is cooling. According to a MarketIndex roundup, JPMorgan downgraded Fortescue from “overweight” to “underweight” and slashed its price target to A$19.75 from A$21.20. The “underweight” rating usually means the stock is expected to underperform its peers or the broader market. (Market Index)
Peers have flagged pricing pressure during China’s annual supply talks. BHP acknowledged accepting lower prices on some iron ore deals with China Mineral Resources Group, warning this could weigh on its realised price. RBC Capital Markets analyst Kaan Peker said restrictions might tighten spot supply, potentially propping up index pricing despite rising discounts. BHP shares fell about 2% on Tuesday, Reuters reported. (Reuters)
That said, the tape can flip quickly. A bounce in iron ore futures or any hint Beijing is stepping up property support would probably boost sentiment among miners. On the flip side, a sharper drop in construction demand or tougher terms on supply contracts would push it down.
Fortescue’s next major test comes with its December 2025 quarterly production report, set for release on Jan. 22, followed by half-year results on Feb. 25, per the company’s investor calendar. Traders will focus on shipments, realised prices, and cost notes for insight into the iron ore market’s trajectory as 2026 begins. (Investor Centre)
