China’s New Iron Ore Buyer Sets Off Biggest Shakeup in Years
- State buyer to take over some contracting for top steelmakers
- CMRG aiming for discounts with unprecedented negotiating power
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China is about to upend the $160 billion iron ore trade with the biggest change in years as Beijing expands efforts to increase control over the natural resources needed to feed its economy.
A new state-owned company called China Mineral Resources Group is poised to become the world’s biggest iron ore buyer as soon as next year, when it will begin consolidating purchases on behalf of about 20 of the largest Chinese steelmakers including leader China Baowu Steel Group Corp., according to people familiar with the situation.