Home / Business and Economy / Rio, Fortescue Ditch Platts Index Amidst China Pressure
Rio, Fortescue Ditch Platts Index Amidst China Pressure
30 Dec
Summary
- Major iron ore producers Rio Tinto and Fortescue changed their pricing indexes.
- This shift follows criticism of current pricing from China Mineral Resources Group.
- The producers are trialing alternative indexes for shipments to China.
Global iron ore giants Rio Tinto and Fortescue have altered their pricing strategies for shipments to China, moving away from the S&P Global Energy Platts Iron Ore Index. This significant industry shift was prompted by public criticism from China Mineral Resources Group (CMRG), which deemed the existing pricing system "irrational" and overly influenced by foreign futures markets. CMRG had initially pushed for the adoption of a domestic Chinese index, but a compromise was reached with alternative providers.
Rio Tinto will trial using the Fastmarkets Ltd index for cargoes loaded for China in January and February 2026, marking a trial period for the final two months of its long-term contracts. Similarly, Fortescue will employ an average of China's Mysteel and the Argus Iron Ore Index for the remainder of its current long-term contracts with Chinese steel mills. These changes reflect CMRG's increasing assertiveness in shaping market practices, including recent actions like banning certain BHP Group products.
