China's state-owned China Mineral Resources Group (CMRG) has reportedly reached a new annual iron ore supply agreement with Australian miner Rio Tinto, according to Reuters, citing sources familiar with the matter.
Mills to submit purchasing requirements
CMRG verbally informed some Chinese steelmakers of the agreement on October 21 and was expected to begin collecting their required purchasing volumes on October 22. The volume covered by the contract remained unclear, while neither company immediately responded to requests for comment.
Supply talks were suspended in August
As SteelOrbis previously reported, CMRG instructed some Chinese mills in August to suspend negotiations with Rio Tinto for shipments from September, seeking to strengthen its bargaining position during annual contract discussions.
Established in 2022, CMRG aims to centralize iron ore procurement and secure more favorable terms for Chinese steelmakers amid weak domestic demand and thin margins.
