China has called on steelworks to suspend purchases of iron ore from Rio Tinto
Contract negotiations with CMRG have repeatedly proved to be a challenge for the industry’s leading players
China’s state-owned iron ore importer, China Mineral Resources Group (CMRG), has advised a number of steelworks to refrain from purchasing the key Pilbara Blend ore from Rio Tinto Group. This was reported by Bloomberg.
According to sources familiar with the situation, this is because contract negotiations with the Australian mining giant have reached a critical stage.
China’s CMRG, established to strengthen Beijing’s influence over the pricing of key raw materials, has informed companies that negotiations have reached a critical stage and has asked them to refrain from discussing new purchases with Rio Tinto for the time being. CMRG, a specialised state-owned purchasing agency, was established in 2022 with the aim of consolidating iron ore procurement and transforming China’s status as the world’s largest consumer of this raw material into a real lever of market influence.
It is difficult to overstate the importance of the Chinese market to the Australian conglomerate: last year, China accounted for almost 60% of Rio Tinto’s revenue. Furthermore, one of the company’s largest shareholders is the Chinese Aluminium Corporation of China, and the mining giant itself is involved in a mega-project with Chinese partners to extract Simandou ore in Guinea.
Contract negotiations with CMRG have repeatedly proved challenging for leading players in the industry. In particular, BHP Group experienced a prolonged delay in negotiations; its standoff with the Chinese regulator concluded with the signing of a one-year agreement, valid until June 2027, which included an extension of settlements in yuan. Another Australian producer, Fortescue Ltd., is currently also facing restrictions on sales to China whilst negotiating terms with the state-owned importer.
As reported by GMK Center, global iron ore shipments in August 2026 remained relatively stable. Despite subdued demand from the key importer—China—the leading producing countries showed predominantly positive or neutral trends, with the exception of South Africa.
