China's Metallurgical Research Group has restricted imports of Fortescue's low-grade iron ore, marking a major shift in Chinese steelmaking procurement. The move aligns with Beijing's carbon neutrality goals, as processing lower-grade ore generates significantly higher CO₂ emissions per metric ton of steel. Fortescue, which earns roughly ninety percent of its iron ore revenue from China, now faces urgent pressure to upgrade its product quality or redirect shipments to alternative markets in India & Southeast Asia.