Iron ore slips after China's state buyer reaches deal with Rio Tinto
Iron ore futures fell after China Mineral Resources Group reached a new supply deal with Rio Tinto. Fortescue warns its operations could be hit by stalled talks.
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what happened
Iron ore futures declined on Thursday after China's state iron ore buyer, CMRG, reached a new supply agreement with Rio Tinto, Reuters reported, citing people with knowledge of the matter. CMRG told some steel mills about the deal verbally on Wednesday without giving details. The January contract on the Dalian Commodity Exchange fell 1.62% to 669 yuan a ton, while the November contract in Singapore dropped 1.24% to $89.9.
According to Mysteel data cited by Reuters, mill losses at Tangshan producers were little changed, even as the cost of molten pig iron kept falling. China's raw iron ore output dropped 23.9% year on year in September to 63.11 million tons, according to the National Bureau of Statistics. Analysts at Everbright Futures nonetheless said steady overseas output, robust shipments and high port inventories point to ample supply. Fortescue, the world's fourth-largest iron ore miner, warned its operations could be hit if talks with CMRG do not conclude by year-end.
why it matters
Two factors matter for the market: Chinese steel demand remains weak, while supply looks sufficient. CMRG's talks with major suppliers set pricing for the whole seaborne segment, so a prolonged dispute with Fortescue adds uncertainty for ore producers and related shares.
market impact
Iron ore and miner shares: ample supply and the CMRG-Rio Tinto deal put pressure on prices.
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sources
- Iron ore dips as China's state iron ore buyer reaches deal with Rio Tinto — Reuters, 22 October 2026 at 03:08 UTC
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