China’s state-owned iron ore buyer has directed major steelmakers and traders to temporarily halt purchases of U.S. dollar–denominated seaborne cargoes from BHP, Bloomberg reported, citing people familiar with the matter.
BHP shares slipped after the report, which was indirectly acknowledged by Australia’s prime minister, who said he hoped a contract pricing dispute would be resolved quickly.
China accounts for around 75% of global seaborne iron ore demand, while BHP is the world’s largest listed miner. The curbs were issued by China Mineral Resources Group (CMRG), set up in 2022 to strengthen Beijing’s pricing power in iron ore markets.
Earlier this month, Bloomberg reported that CMRG had already advised mills to suspend purchases of BHP’s Jimblebar blend fines after contract talks broke down. The latest directive expands those curbs. BHP, which recently posted its weakest profit in five years on softer Chinese demand and lower iron ore prices, declined to comment.
--
Strained trade ties could weigh on AUD if curbs persist.
