Iron Ore Tensions Rise as China Pushes for a Bigger Share of Mining Profits

TL;DR

China is increasing pressure on Australia’s biggest iron ore miners as Beijing pushes for a greater share of the profit pool between miners and steelmakers.

BHP’s recent contract negotiations with China Mineral Resources Group were difficult and are expected to become more complex. CMRG represents close to 80% of Chinese steel mills, giving Beijing far more bargaining power than in previous cycles.

Fortescue has already adjusted its strategy by increasing Chinese supply relationships, taking on a large renminbi-denominated loan and shifting parts of its financing and trading approach.

Rio. . .