China Widens Iron Ore Import Restrictions on BHP
China expanded restrictions on BHP iron ore imports to include Mac and Newman fines. The move follows a long contract dispute that has stalled negotiations.
China has widened its restrictions on purchasing new seaborne iron ore from BHP Group Limited as a months-long contract dispute continues. China Mineral Resources Group (CMRG), the state-run entity established to centralize iron ore procurement, reportedly instructed several traders this week to reduce acquisitions of flagship BHP products, specifically Mac fines, Newman fines, and Newman lumps. These varieties had not been subject to previous restrictions introduced in September and November.
The escalation follows earlier measures where CMRG barred domestic steel mills and traders from buying Jimblebar fines in September, later extending the ban to the Jinbao variety in November. Traders have reported that they were ordered to seek permission before purchasing any BHP seaborne cargoes, yet many applications have reportedly gone unanswered.
