China suspends iron ore purchases from BHP – Bloomberg

China Mineral Resources Group, a Chinese state-owned iron ore buyer, has asked major steel producers and traders to temporarily suspend purchases of any dollar-denominated seaborne cargoes from BHP Group, Bloomberg reports, citing sources.

The decision means that new agreements cannot be signed, in particular for shipments that have already left Australia, except for some deliveries that have arrived in China and are valued in yuan.

At the end of last week, according to sources, the parties held several meetings to discuss the terms of cooperation and pricing, but they were unsuccessful.

Earlier, CMRG called on Chinese steel mills to suspend purchases of Jimblebar mix from BHP. The latest directive from the state buyer extends these previous restrictions. The company has instructed enterprises to refrain from receiving shipments of such ore at Chinese ports and purchasing it for yuan on the spot market. These measures have prompted some metallurgists to begin adjusting production parameters to account for alternative raw materials.

It should be noted that China Mineral Resources Group was established in 2022 with the aim of shifting the balance of power in negotiations with mining companies such as BHP, Rio Tinto Group, and Vale in favor of the Chinese steel industry.

As GMK Center reported earlier, iron ore imports to China amounted to 801.62 million tons in the first eight months of the year, down 1.6% compared to the same period in 2024. The rate of decline slowed from 2.3% in January-July. In August, the figure rose by 0.6% month-on-month and 3.8% year-on-year – to 105.23 million tons. The average price was $92.7/ton (+1.4% month-on-month).