CMRG did not respond to Reuters, while Rio Tinto declined to comment.<\/p>\n
\t\t\t Annual iron ore negotiations typically establish volumes, cargo specifications, and shipment schedules for the following contract year. By preventing mills from settling those details independently, CMRG can increase the volume negotiated through its centralized purchasing system and strengthen its position against major suppliers.<\/p>\n Wood Mackenzie estimates that CMRG is already negotiating for more than half of China\u2019s annual iron ore imports. China imports more than 1.2 billion metric tons a year, making the procurement group one of the largest commodity buyers in the world.<\/p>\n The strategy gives CMRG two sources of leverage. It can restrict purchases from foreign miners during contract disputes, while also pressuring domestic mills to surrender control over supplier relationships they previously managed themselves.<\/p>\n That internal campaign has not been frictionless. A Reuters investigation<\/a> published in December found that some Chinese steelmakers privately complained that CMRG had failed to secure meaningfully better prices, charged additional commissions, and reduced mills\u2019 flexibility when sourcing ore. Smaller mills reportedly benefited in some cases because CMRG could purchase cargoes for buyers that lacked sufficient credit lines.<\/p>\n \t\t\t The Rio Tinto order follows earlier confrontations with BHP Group, Fortescue, and privately held Hancock Prospecting.<\/p>\n CMRG progressively restricted purchases of some BHP products during contract negotiations in late 2025 and early 2026<\/a>. Those restrictions were removed in April after meetings involving senior BHP executives. In July, CMRG reportedly told some mills not to accept certain lower-grade Fortescue products from Chinese ports.<\/p>\n Fortescue said<\/a> last week that CMRG\u2019s actions were disrupting the stability of China\u2019s iron ore supply. The company shipped 52.7 million metric tons during its latest quarter, down 5% from a year earlier.<\/p>\n Iron ore prices rose during Thursday\u2019s trading. The most actively traded contract on China\u2019s Dalian Commodity Exchange gained 2.57% to 719 yuan, or $106.54, per metric ton. The September contract in Singapore rose 2.15% to $96.45 per metric ton.<\/p>\n Rio Tinto had previously appeared less exposed to CMRG\u2019s pressure than its Australian competitors. China\u2019s state-owned Chinalco is Rio Tinto\u2019s largest shareholder and leads the Chinese consortium working with the miner at the Simandou iron ore project in Guinea.<\/p>\n The mining giant delivered the first full shipment from its SimFer operation at Simandou to China during the first quarter<\/a>. The company expects Simandou sales of between 5 million and 10 million metric tons in 2026, with ore sent to China for final crushing.<\/p>\n Those relationships have not prevented the state buyer from applying pressure. Rio Tinto iron ore chief executive Matthew Holcz said this week that bargaining power had shifted away from producers as new supply brought the market closer to balance, according to Reuters.<\/p>\n
\n\t\t\t\t![\"Canadian](\"https:\/\/www.europesays.com\/britain\/wp-content\/uploads\/2026\/08\/creative-canadian-copper-inc-medium_rectangle-8b4351e8-1.png\")
\n\t\t\t<\/a>
\n\t\t\t\t\t\t\tSponsored \u00b7 Canadian Copper Inc.<\/p>\n
\n\t\t\t\t![\"Cambria](\"https:\/\/www.europesays.com\/britain\/wp-content\/uploads\/2026\/08\/creative-cambria-gold-mines-medium_rectangle-a1234a33.png\")
\n\t\t\t<\/a>
\n\t\t\t\t\t\t\tSponsored \u00b7 Cambria Gold Mines<\/p>\n