AXMIN Inc (TSXV: AXM)
AXMIN Inc. (TSXV:AXM) is a Canadian-based exploration and development company with a strong focus on central and West Africa.
The Chinese government established China Mineral Resources Group (CMRG) in 2022 with a mission to reshape the country’s relationship with iron ore suppliers, acting as an intermediary rather than leaving its steel industry at the mercy of miners and traders. In just three years, this state-owned trader has become the dominant force in China’s $130 billion iron ore import market. As the key raw material for China’s billion-ton steel industry, surging prices risk fueling inflation in Asia’s largest economy.
CMRG’s rise has allowed it to exert control over one of the world’s most volatile commodity markets, with iron ore futures volatility dropping to historic lows. Moreover, the company is playing a significant role in negotiations with global mining giants, potentially shifting the power balance between China’s massive steel sector and major suppliers like Rio Tinto Group and BHP Group.
Bancy Bai, a metals analyst at consultancy Horizon Insights, said: “CMRG exists primarily to fundamentally address the overreliance on iron ore imports.” The company has built iron ore stockpiles at over a dozen major domestic ports.
Price movements have been unusually calm over the past six months. While China’s economic slowdown and weaker steel demand are the main reasons, observers say CMRG has also played a role.
According to insiders, one of CMRG’s advantages is its higher tolerance for losses as a state-owned enterprise. As its operations expand, some established trading firms have retreated.
Goldman Sachs Group analyst Aurelia Waltham noted last month that CMRG “helps keep prices at reasonable levels aligned with supply and demand, rather than allowing short-term spikes.” In an earlier report, Goldman Sachs estimated, based on discussions with steel mills, that CMRG’s port stockpiles could be as high as 20 million tons.
David Cachot, head of iron ore research at Wood Mackenzie, said: “The iron ore market has a unique structure—supply is concentrated among extremely low-cost producers, and there are specific quality requirements. This means CMRG’s leverage has increased, but it’s not absolute.”
