China's state-controlled iron ore purchaser, China Mineral Resources Group (CMRG), has told some domestic steelmakers to stop concluding shipment and volume arrangements with Rio Tinto for cargoes due from September, according to two sources. The instruction represents an escalation in the routine annual negotiations between Chinese buyers and the world's largest iron ore suppliers.
In the customary run-up to the expiration of annual supply contracts, miners and customers typically discuss desired volumes, individual cargoes and shipment timing for the coming year, a trader said. Sources said CMRG has been asking some mills to refrain from settling such details with Rio Tinto as part of its negotiating tactic.
Commodity research firm Wood Mackenzie estimates that CMRG is negotiating for more than half of China’s yearly import volumes. Market participants and analysts say the state trader is leveraging that position to secure improved terms for domestic steelmakers by limiting purchases from large iron ore miners while term contracts remain under negotiation.
According to two traders and one analyst, the request to stall talks specifically with Rio Tinto was aimed at pressuring mills that have not transferred their negotiation rights to CMRG. Forcing mills to hand over those rights would increase the volumes procured by the state-run buyer and amplify its bargaining leverage with international producers.
CMRG’s actions have not been limited to Rio Tinto. The state buyer has previously targeted Australia’s other major iron ore exporters - BHP, Fortescue and Hancock Prospecting, the latter privately held by Gina Rinehart. Australia supplies more than half of China’s iron ore imports, making it the country’s dominant source of the steelmaking raw material and Australia’s largest commodity export by value.
Requests for comment to CMRG were not immediately answered, and Rio Tinto declined to comment, according to the sources.
BHP experienced progressive purchasing bans on certain products through late 2025 and early 2026 while its annual term contract negotiations continued, although restrictions were subsequently lifted after a visit by its then incoming CEO Brandon Craig in April. Separately, a senior Fortescue executive last week said that CMRG’s measures were undermining the stability of China’s iron ore supply.
Rio Tinto had been viewed as relatively insulated from some pressure because its largest shareholder is China’s state-owned Chinalco, which also leads the consortium partnering Rio Tinto in the Simandou project in Guinea. Despite that connection, Rio Tinto’s iron ore chief Matthew Holcz said this week that negotiating leverage has shifted away from producers as increasing supply has brought the market closer to balance. Holcz characterized buyer-seller tension as persistent but said the company remains focused on long-term relationships and win-win opportunities.
Australia’s major miners and industry lobby groups have sought assistance from Canberra in responding to Beijing’s tactics, including raising the idea of a single selling desk for Australia’s top commodity export. At least one miner expressed the view that Canberra is pursuing efforts to repair relations with China and therefore may be reluctant to escalate the issue presently.
China has previously imposed unofficial bans on a range of Australian commodity exports, including coal, wine and beef, between 2020 and 2023.