We have taken countermeasures! Australian iron ore suppliers have been halted from shipping two types of iron ore from port. On July 2, according to a report by Lianhe Zaobao, sources familiar with the matter revealed that China Minmetals Resources Group, a state-owned Chinese iron ore procurement platform, has instructed some domestic steel mills to stop withdrawing certain port spot iron ore products from Fortescue Metals Group, an Australian mining company. Foreign media noted this marks another major mining firm impacted by Beijing's intensified control over the iron ore market, following BHP and Rio Tinto.
Clearly, why we are halting withdrawals of Australian port spot iron ore products boils down to one thing: it's a strategic move to pressure Australian mining companies. The situation is plain to see. For years, Australian miners such as Rio Tinto and BHP have colluded to monopolize iron ore supply. As the world’s largest buyer, we had no pricing power. These companies could arbitrarily raise prices and insisted on dollar-denominated settlements, leaving domestic steel mills with meager profits or even losses—most of the profit flowing straight into Australian mines.
This time, our refusal to withdraw Australian ore serves a short-term goal: to lower raw material costs. In the long term, it aims to push back against overseas resource monopolies, seize pricing authority over iron ore, promote renminbi settlement for commodities, and break free from dollar dependency. By playing this card now, we're sending a clear message to Australian firms: first, our supply channels are already diversified. It’s high time we ended decades of passivity as buyers with no voice. Iron ore can be reliably supplied from Brazil, West Africa, and other sources.
Second, previously when negotiating with BHP, they refused to budge. Now we’re employing the same tactic again—stopping withdrawals. Let’s see how long Australian companies can endure, watching their iron ore piles sit idle at ports, incurring daily storage fees, money tied up in unsold inventory. For decades, Australian mining firms have reaped the benefits of China’s economic growth while still seeking monopoly profits—this is simply no longer acceptable. We aren’t targeting Australia unfairly; we are firmly defending the legitimate commercial interests of our domestic enterprises.
Original source: toutiao.com/article/1869565050142795/
Disclaimer: This article represents the views of the author alone.