China Mineral Resources Group criticized the situation on the iron ore market

Iron ore risks losing touch with physical market realities as financial speculation drives prices higher than underlying supply and demand. This comment was made by the research department of state-owned trader China Mineral Resources Group (CMRG), according to Bloomberg.

The message was published on the WeChat account of the China Iron and Steel Association (CISA).

The current resurgence of “false tension” in iron ore prices is the result of speculative trading, CMRG said. The commentary states that some traders are operating in both the futures and physical markets in a way that could create local tension and affect sentiment.

As indicated, in just over three weeks – from November 7 to December 2 – ore prices rose by more than 5% to approximately $107.8/t. The increase is observed despite an increase in port stocks, a decline in steel demand, and a reduction in average pig iron production. Since then, prices have fallen, and futures are trading in a relatively narrow range above $100/t.

In addition, according to SteelOrbis, a Chinese state-owned international trading company, CMRG International Iron Ore Trading, wholly owned by China Mineral Resources Group, has been established. Its registered capital is 1.1 billion yuan ($0.16 billion).

The company’s activities will include procurement services, sales of metal ores and materials, non-metallic minerals and products made from them, import and export of goods, import and export services, domestic trade services, international transportation, investment activities using its own capital, and asset management services for investments using its own capital.

It should be noted that the Chinese government created CMRG in 2022 as an intermediary to change China’s relationship with major iron ore suppliers.

In November 2025, China Mineral Resources Group extended its ban on supplies from BHP to a new product, ordering the cessation of purchases of low-grade Jingbao iron ore.