China Mineral Resources Group Co. and Rio Tinto Group struck a multi-year arrangement earlier this month, said people who asked not to be named because discussions are private. The term runs from November this year until May 2028. Rio Tinto said, "Rio Tinto has a long and successful relationship with our customers in China," while declining to discuss commercial terms. CMRG did not immediately respond.
Formed in 2022 to pool buying by Chinese steel mills and boost leverage with major suppliers, CMRG has quickly widened its reach. In September, it told some mills to pause purchases of Rio Tinto's Pilbara Blend as talks hit a critical phase. Beyond Rio, CMRG also reached a deal with Kumba Iron Ore Ltd., covering April through March 2027.
China remains the largest iron ore importer by far, drawing most cargoes from Australia and Brazil to feed its steel sector. Prices have softened this year, with the benchmark off roughly 15% and lately falling under the $90-a-ton mark in Singapore. On Thursday, futures reached $89.45 a ton, down as much as 1.7%, before recouping part of the slide.
Negotiations with Rio's Australian peers underline the pressure. The lengthy stalemate with BHP concluded in a one-year pact running through June 2027, which expanded the use of yuan pricing. Fortescue Ltd. is still at the table and warned this week that limits on sales could weigh on its full-year earnings.
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A centralized Chinese buyer pushing longer terms and local-currency pricing can reshape how iron ore is sold, which influences producer margins and the volatility that feeds into materials stocks. The price slide alongside shifting contracts is a reminder that supply talks and policy can move the commodity tape as much as demand data.
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