It is reported that Rio Tinto and Fortescue have changed the pricing benchmark for iron ore supply to China

Bloomberg cited informed sources stating that the world's two largest iron ore producers, Rio Tinto and Fortescue, have changed the index used to price iron ore for China, the largest consumer of iron ore globally.

Before this rare change, China's state-owned buyer, China Mineral Resources Group Co., Ltd., had publicly criticized the current pricing mechanism.

According to informed sources, notices received by steel mills associated with China Minerals indicate that Rio Tinto and Fortescue will stop using the S&P Global Platts Iron Ore Index in long-term contracts.

Rio Tinto will switch to an alternative iron ore index published by Fastmarkets Ltd. for shipments to China in January and February 2026. Informed sources said this change will be trialed in the last two months of Rio Tinto's long-term contract with the steel mills. One person mentioned that China Minerals had requested Rio Tinto to use the newly launched domestic iron ore index in Beijing, but Rio Tinto refused, and the Fastmarkets index is seen as a compromise solution.

Informed sources said that Fortescue will adopt the average of the "My Steel" index and the Argus Iron Ore Index. This trial plan will continue until the remaining term of its long-term contract with Chinese steel mills ends.

Sources revealed that as part of ongoing negotiations, both Rio Tinto and Fortescue have agreed to extend their long-term supply contracts with China Minerals by six months, until 2026. The contract terms for these two mining companies differ, with Rio Tinto's existing long-term contract originally set to expire in February next year, while Fortescue's contract was originally set to expire this month