According to three sources familiar with the matter who requested anonymity, CMRG instructed around a dozen traders at a meeting held on Thursday to purchase iron ore shipments through the online platform established by the state owned company.
CMRG was established in 2022 to strengthen Beijing's pricing power in China, the world's largest iron ore consuming market. The company is seeking to increase transaction volumes on its platform and strengthen its visibility into pricing.
CMRG did not immediately respond to a request for comment.
Traders purchase through different platforms
Traders generally purchase iron ore directly from mining companies or through publicly accessible trading platforms such as Corex and globalORE.
CMRG's platform, meanwhile, is mainly used by steelmakers to source iron ore shipments.
Platform usage schedule not disclosed
According to the sources, CMRG did not provide the traders attending the meeting with detailed information on the implementation of the plan, including when they would be required to start using the platform.
A second source said it would be difficult to force traders to use the platform in the short term because CMRG currently doesn't have sufficient cargo volumes to meet all requirements.
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