China's state iron ore buyer told mills to delay Rio Tinto purchases, sources say

Rio Tinto

08/09/2026 08:37

Sept 8 (Reuters) - China's state iron ore buyer has asked some domestic steelmakers to hold off buying Rio Tinto RIO.AX, RIO.L iron ore, as supply contract talks with the world's largest miner of the key steelmaking ingredient are underway, said three sources with knowledge of the matter. 
The new verbal guidance from China Mineral Resources Group (CMRG), set up in 2022 to centralise iron ore procurement and win better terms from miners, is not a ban on purchases, said the sources, who spoke on condition of anonymity given the sensitivity of the matter. 
Any move to ban procurement of Rio Tinto iron ore products, which account for nearly a fifth of China's annual imports, could see iron ore prices rise sharply, they said. 
Bloomberg first reported the new directive.
CMRG did not immediately respond to a Reuters request for comment. Rio Tinto declined to comment.
One source speculated that a new supply deal was close and that CMRG wanted steel mills to hold off purchases until it was reached, at which point CMRG expected better terms would be available.
The most active futures contract on the Singapore Exchange SZZFV6 was up 0.83% at $101.15 a metric ton as of 0723 GMT before hitting its highest since June 17 at $101.35 earlier on Tuesday.
Rio Tinto's iron ore includes its flagship Pilbara Blend Fines and Pilbara Blend Lump.
CMRG has repeatedly used purchase bans and informal guidance to pressure iron ore miners during regular negotiations.
It barred domestic steelmakers and traders from buying some iron ore brands from BHP BHP.AX for more than six months before reaching an agreement with the miner in mid-April and lifting the bans.
Reuters reported last month that CMRG directed some steel mills to halt negotiations with Rio Tinto for shipments from September.   
     

 (Reporting by Reuters staff; Additional reporting by Melanie Burton in Melbourne; Editing by Michael Perry)