Fortescue Profit Falls 41% to $3.37 Billion, Cuts Dividend 33%, Delays Iron Bridge as China Caps Coal and Iron Ore Prices Rise

Fortescue Metals Group Ltd., one of Australia's leading iron ore producers, reported a 41% decline in its full-year profit to $3.37 billion due to weaker iron ore prices amid slowing demand from China. This marks the company's smallest annual profit in six years. In response to the challenging market conditions, Fortescue has cut its final dividend by 33% and delayed the ramp-up of key projects such as the Iron Bridge mine until 2028. Despite these setbacks, the company remains committed to its long-term strategy focused on producing green iron. Meanwhile, China's industrial sector continues to face pressure with declining profits driven by subdued demand and deflationary challenges. However, there are signs of improvement in related markets; for instance, copper prices on the London Metal Exchange have risen, supported by stronger Chinese industrial profits. Additionally, Chinese steelmakers have experienced an uptick in fortunes as the government takes measures to address oversupply and maintain export levels despite trade restrictions. Reports indicate that China plans to reduce steel production, which has contributed to a recent increase in iron ore prices. Furthermore, China is capping coal production to support prices, according to top miners and analysts, reflecting broader efforts to stabilize commodity markets amid ongoing economic adjustments.