China Mineral Resources Group (CMRG) has ordered domestic steel mills to suspend negotiations with Rio Tinto regarding shipments starting in September 2026. The directive, issued on August 6, aims to pressure the Australian miner during annual contract talks.
CMRG currently manages over half of China's annual iron ore imports, which exceed 1.2 billion metric tons. By centralizing purchasing power, the state-backed entity seeks to secure concessions, including potential shifts toward yuan-denominated pricing.
Previously, CMRG utilized similar tactics against BHP and Fortescue. In those instances, restrictions were lifted following executive visits to Beijing and the signing of new supply agreements. The current situation with Rio Tinto remains ongoing.
China consumes approximately 70% of global seaborne iron ore. Established in 2022, CMRG functions as a gatekeeper to consolidate the country's bargaining position, replacing the previous system where individual mills negotiated independently.
