China Plans State-Backed Platform to Buy Iron Ore, Sources Say

China’s latest bid to wrest control of soaring iron ore prices is a plan to make global suppliers negotiate sales to the world’s biggest market through a centralized platform.

Beijing wants all purchases of the steelmaking material conducted through a single state-backed platform that’s under preparation, according to people familiar with the matter. At the moment, Chinese businesses including steel mills can negotiate spot purchases independently.

The plan aims to stabilize the steelmaking ingredient over the long-term, and is part of a broader focus on boosting China’s influence over the price of commodities, the people said. Iron ore’s spot market is relatively small, but prices there determine how much steel mills pay in long-term contracts.

China churns out more than half the world’s steel, and its iron ore imports last year were worth nearly $180 billion. Its steel industry has long complained at the pricing power it says is held by a handful of giant international mining companies. Authorities are also keen to head off inflation as Beijing rolls out stimulus measures in 2022 that could reboot steel demand.

China’s National Development and Reform Commission didn’t immediately respond to a faxed request for comment.