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Brazil's CSN in talks with China's state iron ore buyer, sources say
Brazil's CSN in talks with China's state iron ore buyer, sources say
About this update from Csn Mineracao Sa
Brazilian steelmaker and miner CSN Mineração BMFBOVESPA:CMIN3 is discussing a supply agreement with China's state iron ore buyer, two sources with knowledge of the matter said, in another sign that Beijing is pushing to tighten its grip on iron ore pricing.China Mineral Resources Group intends to become an exclusive sales agent for some of CSN's iron ore cargoes sold in China, one of the sources said, emulating similar deals struck with Roy Hill, now part of Australia's Hancock Prospecting.This approach differs from the deals CMRG has struck with other miners such as BHP, where it instead negotiated better terms for sales between miners and steelmakers.CSN and CMRG did not immediately respond to Reuters requests for comment.CMRG was set up in 2022 to centralise China's iron ore procurement and win better terms from upstream mining giants.At 45.5 million metric tons of iron ore produced last year, CSN is a large producer in Brazil, although its output is less than the 250 million tons plus produced by majors like Australian BHP.The sources asked not to be named as the talks are private and they are not authorised to speak to media.