But while Fortescue has historically received a discount of 10 to 15 per cent to the benchmark, in the 2017 financial year it achieved sales at a discount of 23 per cent. The gap widened to 27 per cent in the June quarter.According to pricing information sent to market participants in China, the discount for FMG’s lower grade ore has blown out over the last three weeks.
Traders were told on August 22 the discount for the company’s product with 56.7 per cent iron content was 32 per cent compared to the benchmark price. But on September 8 this was increased to 35 per cent.
