Fortescue Metals Group Ltd. (FMG.AU) said Thursday it is currently selling its iron ore at levels above spot prices but below the average price achieved in the third quarter.

The Perth-based miner said aggressive spot shipment marketing by BHP Billiton Ltd. (BHP.AU) and Rio Tinto Ltd. (RTP) is straining market pricing at a time when benchmark prices are being settled in annual negotiations.

"Nevertheless, we are achieving prices above the spot rates for similar products but a little weaker than our last quarter announced average price," Fortescue said in a presentation slide.

Fortescue said last month that it had been selling its ore at interim price averaging between US$60 and US$70 a dry metric ton during the third quarter, as it awaited the settlement of a new benchmark price.

The miner said in its presentation Thursday that Rio Tinto's settlement with Nippon Steel Corp. (5401.TO) translated to a freight-on-board price for Fortescue's Rocket iron ore fines product of about US$57.25 per dry metric ton.

Fortescue said Chinese iron ore imports remain very strong and its customers are still buying all the ore it can produce.

-By Alex Wilson, Dow Jones Newswires; 61-3-9292-2094; alex.wilson@dowjones.com