Rio Tinto faces iron ore pressure from China negotiations

Rio Tinto is facing potential headwinds as the China Mineral Resources Group (CMRG) has reportedly instructed some steel mills to halt purchases of the company’s Pilbara Blend iron ore while contract negotiations continue. CMRG has been negotiating iron ore purchases on behalf of China since 2022 to leverage the nation's buying power for better pricing and terms. Similar pressures have previously been felt by other major miners, including BHP Group and Fortescue Ltd.

Despite these developments, Rio Tinto’s business is becoming more diversified. In the first half of 2026, copper EBITDA rose 84% compared to the previous year, driven by higher prices and increased production from the Oyu Tolgoi mine in Mongolia. While iron ore remains the company's largest earnings contributor, generating US$6.8 billion in EBITDA during the first half of 2026, copper followed closely with US$5.7 billion.

Rio Tinto shares have seen significant growth, rising nearly 20% in 2026 and approximately 49% over the last 12 months. The company remains a major player in the materials sector, with a portfolio spanning aluminium, copper, diamonds, and lithium.