Rio Tinto Group (ASX:RIO), BHP Group (ASX:BHP), and Fortescue (ASX:FMG) are urging the Albanese government to consider policy responses to China's increasing consolidation of iron ore purchasing power, warning that the shift is reshaping pricing dynamics in Australia's most valuable export market, the Australian Financial Review reported on Friday.
The push targets the China Mineral Resources Group (CMRG), a state-backed buyer set up in 2022 that now handles about 70% of China's iron ore imports, boosting Beijing's bargaining power, pressuring contract prices, and tightening negotiations with major suppliers amid concerns of a structural shift in market power, per the report.
CMRG said it wants to close the profit gap between Chinese steelmakers and iron ore producers, but Australian miners attribute weak margins to China's steel overcapacity, reviving debate over whether greater miner coordination should be permitted despite competition law limits.
The federal government has avoided intervening in pricing, with Resources Minister Madeleine King saying iron ore prices are set by producers and buyers, and that critical minerals policies are not intended to influence bulk commodity prices.
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