According to sources, CMRG asked some steelmakers not to finalize negotiations with Rio Tinto over volumes and delivery schedules for annual contracts covering shipments scheduled from September onward.
Under annual supply contracts, mining companies and steelmakers determine shipment volumes and delivery schedules for the following year during this period. CMRG's intervention is viewed as part of its effort to establish centralized control over these negotiations.
CMRG seeks to consolidate larger purchasing volumes
According to estimates by Wood Mackenzie, CMRG is negotiating for more than half of China's annual iron ore imports.
Sources speaking to Reuters said the move against Rio Tinto is aimed at putting pressure on steelmakers that have not yet transferred their negotiating authority to CMRG. The objective is to allow the state backed organization to manage a larger purchasing volume centrally and strengthen its bargaining position with international mining companies.
BHP and Fortescue previously faced similar pressure
CMRG had previously taken similar measures against major Australian producers BHP, Fortescue, and Hancock Prospecting.
According to the report, purchasing restrictions on certain BHP products remained in place during contract negotiations from late 2025 through early 2026. The restrictions were lifted following discussions between the company's management and Chinese authorities.
Fortescue said last week that CMRG's measures were negatively affecting China's stable iron ore supply.
Rio Tinto also comes under pressure
Rio Tinto had previously been considered relatively less exposed to similar pressure because its largest shareholder is China's state owned Chinalco. However, according to Reuters, CMRG's latest move indicates that the company is also facing direct pressure in negotiations.
Rio Tinto Iron Ore Chief Executive Matthew Holcz said this week that increasing global supply is shifting bargaining power in the iron ore market from producers toward buyers. Holcz added that the company would continue focusing on long term partnerships.
Prices increased in the markets
Following the developments, the most actively traded iron ore contract on the Dalian Commodity Exchange ended the day up 2.57% at CNY 719/t. The September benchmark iron ore contract traded on the Singapore Exchange increased 2.15% to USD 96.45/t.
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