Massive Chinese State iron-ore buyer still an unknown quantity
A year after China set up a company that’s expected to become the world’s biggest iron-ore buyer, the firm and how it will operate remains shrouded in mystery.
China Mineral Resources Group was established last July to consolidate purchases for a nation that accounts for around three-quarters of the world’s iron ore imports. Ranked as the 36th most important state-owned company by Chinese authorities, the firm that’s poised to upend the $160-billion global trade in the steel-making staple still doesn’t have a website, or any public contacts.
So there was a lot of interest when the state-run China Metallurgical News published the first strategic plan for CMRG last week. But those hoping for some insight into how the company intended to challenge the pricing dominance of the top three iron ore miners — Rio Tinto Group, Vale and BHP Group — were left disappointed.
CMRG said it had made progress on iron ore procurement, major national projects, and other key works in the past year. However, the plan contained no details or targets, and instead was filled with broad statements including that it would strive to become a world-class mineral resources integrated service enterprise.
The Chinese company had already began discussing supply contracts with Rio, Vale and BHP, Bloomberg reported late last year. The big miners have divulged very little about their dealings with CMRG, however.
Its establishment was backed by top leaders in Beijing, Bloomberg reported. But it’s still unclear when it will begin purchases and how much of China’s iron ore buying will eventually become centralized.
Most Chinese steel mills are due to conduct annual contract negotiations with the miners toward the end of the year. That may provide an opportunity to try and gauge the role CMRG is going to play in the global iron ore market.
Comments
Research Reports
Latest Multimedia
Latest News
Showroom
At AMS Haden, we are a supplier of specialist instrumentation to numerous industries and markets for the specific tasks of monitoring, evaluating...
VISIT SHOWROOM
Weir Minerals Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones, wear-resistant linings,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
