CMRG Highlights Speculation in Iron Ore Market
China Mineral Resources Group (CMRG) cautions that iron ore prices are increasingly detached from physical market realities. Speculative trading in futures and physical markets has created artificial tension, CMRG said. Between November 7 and December 2, iron ore prices surged over 5% to $107.8/t despite rising port stocks and weaker steel demand. Analysts warn that these conditions risk misguiding market participants and inflating short-term volatility.
New CMRG International Trading Company and Market Strategy
CMRG established CMRG International Iron Ore Trading with 1.1 billion yuan ($0.16 billion) in registered capital. The company will handle procurement, domestic and international trade, asset management, and import-export operations. Created in 2022, CMRG aims to reshape China’s relationship with major iron ore suppliers. Recently, it extended its supply ban on BHP’s low-grade Jingbao ore, reflecting tighter controls and strategic market positioning.
SuperMetalPrice Commentary:
CMRG’s warning emphasizes the growing role of speculation in China’s iron ore market. Traders should monitor futures and physical market divergence closely. The establishment of an international trading subsidiary signals China’s commitment to controlling ore flows, impacting global supply chains and pricing trends. Investors may see short-term volatility, but strategic alignment with actual supply-demand fundamentals could stabilize prices in 2026.
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