 cargoes — as reported by Bloomberg, citing people familiar with the matter.){kind=link}
China bans all BHP iron ore
China’s state-run iron ore buyer has told major steelmakers and traders to temporarily halt purchases of all new BHP (ASX: BHP) cargoes, Bloomberg reports, citing people familiar with the matter.
China Mineral Resources Group (CMRG) reportedly asked domestic buyers to suspend purchases of any dollar-denominated seaborne cargoes from BHP.
CMRG was established in 2022 in an aim to centralise iron ore demand, tighten control over the global steel market and give Chinese steel producers more control over prices.
This ban signals an escalation from CMRG, as the group similarly halted the purchase of BHP’s Jimblebar blend fines in early September.
As a leading producer, BHP is a major supplier of bulk iron ore to China’s steelmakers. In FY25, BHP generated US$32,083m in revenue from its Chinese customers.
BHP has already been hit by lagging demand from China, seeing a US$4.4b revenue decrease in FY25 primarily due to the decline in iron ore and coal prices.