Home / Business and Economy / China Iron Ore Ban Escalates: BHP Cargoes Restricted
China Iron Ore Ban Escalates: BHP Cargoes Restricted
5 Mar
Summary
- China's iron ore buyer expanded curbs on BHP seaborne cargoes.
- Restrictions now target Mac fines, Newman fines, and Newman lumps.
- Jimblebar cargo stockpiles at Chinese ports surged 457%.
China's state-run iron ore purchasing group, China Mineral Resources Group (CMRG), has intensified restrictions on acquiring new seaborne iron ore cargoes from mining giant BHP. This move signifies an escalation in a contract dispute that has been ongoing for several months.
CMRG recently communicated to traders that fewer BHP flagship products, including Mac fines, Newman fines, and Newman lumps, should be purchased. These specific products had not previously been subject to the widely reported restrictions implemented in September and November.
The dispute began with CMRG barring domestic steel mills and traders from buying BHP's Jimblebar fines in September. This was followed by an extended ban in November to Jinbao, another iron ore variety, as negotiations stalled. Traders reported being instructed by CMRG to seek permission for any BHP seaborne cargo purchases, but have received no responses to their applications.
As a consequence of these measures, stockpiles of Jimblebar cargoes at major Chinese ports have surged. By February 26, these stocks reached a record high of 9.8 million tons, representing an unprecedented 457% increase since late September.
