Foreign media: China's state iron ore purchasing entity, China Mineral Resources Group (CMRG), is adopting a tougher strategy to pressure mining giants such as BHP, aiming to secure better contract terms in the $132 billion seaborne iron ore market.
In November 2025, CMRG asked steel mills and traders to suspend the purchase of certain BHP spot products, escalating the negotiation tactics. CMRG represents more than half of the demand for the 120 million tons of annual imports by China. CMRG has previously secured a $1 per ton freight discount and controls part of the mineral source sales.
Looking ahead, the Simandou project in Guinea is expected to come online in 2028, potentially contributing about 7% of global supply, creating a surplus of 65 million tons, and enhancing China's bargaining power. However, miners believe that the fundamentals of supply and demand still dominate prices.
Original article: toutiao.com/article/1852819132694528/
Statement: This article represents the views of the author himself.