Sydney, January 23, 2026, 16:50 (AEDT) — Market closed
- Fortescue shares ticked up 0.1% on Friday, clawing back some ground after a 5.1% slide the day before.
- Shipments for the December quarter reached 50.5 Mt, but unit cash costs rose, squeezed by higher diesel prices and currency fluctuations.
- Key upcoming events: iron ore prices, China’s buying talks, and Fortescue’s half-year results due Feb. 25.
Fortescue Ltd shares nudged higher by 0.14%, finishing Friday at A$21.51. The stock swung between A$21.14 and A$21.55 throughout the session. This follows a sharp 5.12% decline to A$21.48 on Thursday, driven by a quarterly update investors digested. 1
This move stands out because Fortescue’s profits still hinge on iron ore. The December-quarter report has reignited concerns over costs and the Iron Bridge ramp-up, its magnetite project. Both elements hit cash flow and dividends hard, especially as the market grows less forgiving of surprises.
Miners are wrestling with how much pricing power they actually have in China, their biggest market. For Fortescue, the main question is whether soaring shipment volumes can offset rising costs if iron ore prices fall.
Fortescue’s December 2025 quarterly report revealed iron ore shipments hit 50.5 million tonnes (Mt) for the quarter, lifting first-half shipments to a record 100.2 Mt — up 3% from the previous first half. The company posted a hematite C1 unit cost of US$19.10 per wet metric tonne (wmt), a cash-cost measure for mining and processing, exceeding its full-year guidance of US$17.50 to US$18.50/wmt. Still, Fortescue maintained its FY26 shipment and cost targets. The update also noted the delivery of its first large-scale battery energy storage system (250 MWh) in the Pilbara and a binding agreement to acquire the remaining 64% stake in Alta Copper it doesn’t already own.
On a recent results call, CEO Dino Otranto disclosed Fortescue is boosting its ties with China by sourcing more equipment and renewable gear from Chinese suppliers, amid Beijing’s state-backed procurement efforts that are reshaping negotiations. Reuters reported China Mineral Resources Group (CMRG) has restricted some purchases of rival BHP’s cargoes in the 2026 contract talks. Otranto emphasized Fortescue’s aim to keep its volumes “flowing uninterrupted” by diversifying its customer base. Ben Richards, portfolio manager at Seneca Financial Solutions, flagged rising costs as the key drag on the stock. Jefferies highlighted that Iron Bridge’s production and shipments still indicate a tough ramp-up ahead. Reuters also noted Fortescue’s half-year results are due Feb. 25. 2
Iron ore prices are set to draw attention again next week. The benchmark 62% iron ore futures hovered around $106.42 a tonne, according to delayed data from Jan. 22, with little change recorded that day. 3
Fortescue’s margins are under pressure right now. A spike in diesel costs or a shaky exchange rate could quickly erase profits from high volumes. This challenge is tougher for Fortescue than for some competitors because its primary hematite products often sell below the benchmark price.
Iron Bridge is the second squeeze point. The company shipped 2.2 Mt of concentrate in Q4 and 4.3 Mt in the first half, numbers that back the full-year target of 10–12 Mt at 100% but don’t leave much wiggle room.
The company pointed to higher outlays on decarbonisation efforts, such as expanding battery storage, solar initiatives, and its electric mining fleet. Investors generally see this as a medium-term bet, holding out for cost savings to kick in before showing greater enthusiasm.
The risk is sharp. If iron ore prices drop but costs stay elevated, Fortescue’s margin between realised prices and cash costs will tighten fast. A hiccup at Iron Bridge could fuel investor concerns about the project’s ramp-up and its funding needs.
After Friday’s close, attention turns to iron ore price cues and any new China buying reports that might impact sentiment. Fortescue’s half-year results, due Feb. 25, have become the main event for fresh details on costs, guidance, and Iron Bridge progress.
