China's state iron ore buyer reaches new supply deal with Rio Tinto - Reuters

What happened: China Mineral Resources Group notified some steel mills of a new supply agreement with Rio Tinto (RIO), per Reuters. CMRG will start collecting information on the volumes each mill needs to buy from the miner. Why it matters: China created CMRG in 2022 to centralize iron ore procurement and strengthen its bargaining power with miners, aiming for better terms for steelmakers facing thin margins and weak domestic demand. Key numbers: CMRG established in 2022. Reuters reported in August that CMRG directed some mills to halt Rio Tinto negotiations for shipments from September.

China Mineral Resources Group notified some steel mills of a new supply agreement with Rio Tinto (RIO), per Reuters. CMRG will start collecting information on the volumes each mill needs to buy from the miner.

China created CMRG in 2022 to centralize iron ore procurement and strengthen its bargaining power with miners, aiming for better terms for steelmakers facing thin margins and weak domestic demand. Key numbers: CMRG established in 2022. Reuters reported in August that CMRG directed some mills to halt Rio Tinto negotiations for shipments from September.