China’s state iron ore buyer tells steel mills to stop negotiating with Rio Tinto

China Mineral Resources Group, the state-backed entity Beijing created to serve as a centralized iron ore purchasing arm, has instructed select domestic steel mills to halt contract negotiations with Rio Tinto for shipments set to begin in September 2026. The move is the latest in a series of escalating interventions designed to funnel individual mill procurement rights through a single, government-controlled chokepoint. The consolidation playbook CMRG was established roughly three years ago with a clear mandate: unify China’s fragmented iron ore purchasing market and use that scale as leverage against the mining giants that have historically held pricing power. According to estimates from Wood Mackenzie, the entity now handles negotiations for more than half of China’s annual iron ore imports. This isn’t the first time CMRG has flexed. In September 2025, the group moved to restrict purchases from BHP, another one of the “Big Three” iron ore producers alongside Rio Tinto and Fortescue Metals Group. Fortescue has faced similar pressure in recent months, with CMRG pushing back on the Australian miner’s offers in the lead-up to this latest directive. What investors should watch The di...