China Mineral Resources Group Asks Steel Mills to Suspend Purchases of Rio Tinto Iron Ore
nashnova research
China Mineral Resources Group has told some steel mills to suspend purchases of Rio Tinto's flagship Pilbara Blend while contract talks reach a critical stage — the latest move in Beijing's push to turn the world's largest iron-ore buyer into a price-setter.
What happened?
Bloomberg reports, citing people familiar with the matter, that CMRG (中国矿产资源集团) — a state-backed platform set up in 2022 to consolidate China's iron-ore purchasing power — has told some mills to halt buying talks with Rio Tinto for Pilbara Blend.
The reason given: contract negotiations are at a critical juncture. No terms or timeline have been disclosed.
Rio Tinto declined to comment; CMRG did not immediately respond.
Why is Rio Tinto the key target?
China accounted for nearly 60% of Rio Tinto's revenue last year. Chinalco is also a major Rio shareholder.
This means → Rio's dependence on the Chinese market is extreme, giving Beijing natural leverage at the table.
The two sides also partner on the massive Simandou iron-ore project in Guinea — the relationship runs far deeper than spot trade.
How did earlier negotiations with other miners go?
CMRG's standoff with BHP lasted months before ending in a one-year deal running to June 2027, with an expanded share of renminbi-denominated settlement.
In plain terms = CMRG traded time for two wins: a locked supply term + a bigger role for the yuan.
Australia's Fortescue also saw its China sales constrained during its own CMRG talks — the same pressure playbook is being reused.
What does this mean for the market?
This reflects a systematic Chinese effort to shift from passively accepting iron-ore prices to actively contesting pricing power.
Whether a deal is reached — and on what terms — will be a critical test of whether this strategy works.
In plain terms = if Rio Tinto concedes ground the way BHP did, it confirms that CMRG's centralized-purchasing model is genuinely reshaping the iron-ore market's power structure.
市场有风险，内容仅供研究参考，不构成投资建议。