China allows steel plants to resume BHP iron ore bidding
China authorized local steel plants to resume bidding for BHP iron ore starting Tuesday. This ends a purchase pause requested in September of last year.
China has reportedly moved to relax restrictions on iron ore shipments from BHP GROUP LTD, signaling a potential shift in the trade relationship between the world's largest consumer and its top supplier. Officials from the state-backed iron ore buyer have reportedly notified local steel plants that they can resume bidding for certain cargoes denominated in U.S. dollars starting this Tuesday. This development follows a directive issued in September of last year by the China Mineral Resources Group (CMRG), which had asked the nation's steelmakers and traders to pause acquisitions of dollar-denominated seaborne iron ore from the Australian mining giant. As the world's largest listed miner, BHP remains a critical component of the global supply chain. The resumption of these transactions marks a significant step for the industry after months of restricted activity.
